Calculate the net present value of the machine assuming a $6\%$ discount rate. $($If the net present value is negative, use either a negative

sign preceding the number eg $-45$ or parentheses eg $(45).$ For calculation purposes, use $5$ decimal places as displayed in the factor table

provided, e$.$g$.1\mathrm{.}25124.$ Round present value answer to $0$ decimal places, e$.$g$.125.)$

Should the company buy the machine based on your results?

Further investigation reveals that there would be a sales increase of $$7,000$ annually as a result of an increase in quality from the

customer's perspective and a cost reduction of $$2,800$ annually as a result of lower warranty claims. Considering these additional

facts, calculate the Net Present Value of the machine. $($If the net present value is negative, use either a negative sign preceding the

number eg $-45$ or parentheses eg $(45).$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided, e$.$g$.$

$1\mathrm{.}25124.$ Round present value answer to $0$ decimal places, e$.$g$.125.)$Novak Corporation is considering buying a brand new machine and has gathered the following data:

Investment

$$105,100$

$5$ years

Estimated life

Estimated annual cash inflows

$$30,100$

Estimated annual cash outflows

$$10,000$

Salvage value for the machine is estimated to be zero.