A machine costs $300,000 right now and an extra $80,000 a year from now, and is expected to produce the following cash flows: 3 4 Year Cash flow ($thousand) $ 85 50 IS 571 S 75$ 80S (continue on next page) 7 8 9 6 10 Year Cash flow is thousand) S 92 S 92 $ 801 S 50 68S Your cost of capital is 8%/year. a. What is the project's PB (payback period)? 15 points) 179 180 13 181 182 183 184 189 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 206 209 210 211 212 213 b. What is the project's NPV? (15 points) c. What is the project's IRR? (10 points) d. Using NPV, what is your investment decision? (5 points) e. Using IRR, what is your investment decision? (5 points)