A food processing company is analyzing the purchase of a new machine costing $6,00,000. The machine will reduce annual operating costs by $1,00,000 for 10 years. The machine’s salvage value at the end of 10 years is $50,000. The discount rate is 10%.

Requirements:

1. Calculate the NPV of the investment.
2. Determine the IRR.
3. Compute the Discounted Payback Period.
4. Assess the impact on NPV if the savings are $1,20,000 annually.