Answer questions 26 and 27 using the information provided below. EXTRACT FROM RATE OF RETURN TABLES FOR USE IN QUESTION 26 SHOWING PERCENT = 16% Period Compound amount Present Compound amount of of $1.00 (Future Value Annuity $1.00 in arrears Value of $1.00) of (Future Value of an $1.00 annuity) Present Value of an Annuity $1.00 in arrears 1 1.160 0.862 1.000 0.862 2 1.346 0.743 2.160 1.605 3 1.561 0.641 3.506 2.246 4 1.811 0.552 5.066 2.798 5 2.100 0.476 6.877 3.247 6 2.436 0.410 8.977 3.685 7 2.826 0.354 11.414 4.039 8 3.278 0.305 14.240 4.344 9 3.803 0.263 17.519 4.607 10 4.411 0.227 21.321 4.833 Altone Manufacturing (AM) wants to purchase a machine to speed up production. Its existing slow machine will operate for 3 more years and will have a zero-disposal value. If it is disposed now, it will sell for $100,000. The new machine will cost $350,000. An additional cash investment in working capital of $100,000 will be required. Its working capital investment is not recoverable. Employees are pleased because the new machine will complete production within 2 hours instead of waiting until the next day. This means electricity costs will decrease. The investment is expected to net $110,000 in additional cash inflows during the first year of acquisition and $250,000 each additional year of use. The new machine has a 3-year life, and zero disposal value. These cash flows occur throughout the year but are recognized at the end of each year. AM has no income tax liability for the next 5 years. Calculate the net present value of the investment, assuming the required rate of return is 16%? Would the Altone Manufacturing want to purchase the new machine? $(180,000); no $90,820; yes d $180,000; yes