Clairmont Corporation is considering the purchase of a machine that would cost $150,000 and would last for 5 years. At the end of 5 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $37,000. The company requires a minimum pretax return of 9% on all investment projects. Present value of annuity of $1: 8% 9% 1 0.926 $0.92 2 1.783 1.759 3 2.577 2.531 4 3.312 3.24 5 3.993 3.89 Present value of $1: 8% 9% 1 0.926 0.917 2 0.857 0.842 3 0.794 0.772 4 0.735 0.708 5 0.681 0.65 1. What is the present value of the annual cost savings of $37,000? 2. What is the present value of the salvage value of $18,000? 3. What is the net present value of the investment? 4. What is the pay pack period?