A machine will cost $30,000 to purchase. Annual operating and maintenance costs will be $2,000. The machine will save $10,000 per year in labor costs. The salvage value of the machine after 5 years will be $7,000. Draw the cash flow diagram. b) Miriam is interested in estimating the annual labor and material costs for a new production facilities. She was able to obtain the following cost data. What are annual labor and material costs today? Labor cost Labor cost index value was at 120 ten years ago and is 240 today. Annual labor costs for a similar facility were $50,000 ten years ago. Material cost Material cost Material cost index value was at 250 three years ago and is 750 today. Annual material costs for a similar facility were $2,000,000 three years ago