A Company is considering the purchase of a machine for 3,50,000. It feels quite confident that it can sell the goods produced by the machine so as to yield an annual cash surplus of 1,00,000. There is however an uncertainty as to the machine's working life. A recently published Trade Association Survey shows that members of the association have between them owned 250 of these machines and have found the lives of the machines vary as under: No. of year of machine life 3 4 5 6 7 Total No. of machines having given life 20 50 100 70 10 250 Assuming discount rate of 10% the net present value for each different machine's life is as follows: 3 4 5 6 7 Machine life NPV) (1,01,000) (33,000) 29,000 86,000 1,37,000 You required to advice whether the company should purchase the machine or not