An auto repair shop is considering the purchase of an automated paint spraying machine. The machine costs $80,000 (payment due immediately), will last five years and will save $2,000 in paint costs and $20,000 in labor costs (assume savings happen at the end of the year). The machine requires annual maintenance costing $1,000 each year, payable at year end. At the end of its useful life, the machine can be sold for $5,000. The companys cost of capital is 12%. Should the company buy the machine? Ignore taxes. Show supporting calculations.