Considering the purchase of a machine that would cost $and

would last for years, at the end of which, the machine would have

a salvage value of $ The machine would reduce labor and

other costs by $ per year. Additional working capital of

$ would be needed immediately, all of which would be recovered

at the end of years. The company requires a minimum pretax return

of on all investment projects.Click here to viewExhibitBandExhibit

Bto determine the appropriate discount factors using

tables.

Required:Determine the net present value of the

project.