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Cumulative ABC Company decided to change their capital structure. They are evaluating the purchase of a new machine for $200,000 plus $10,000 in installation costs.

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Cumulative ABC Company decided to change their capital structure. They are evaluating the purchase of a new machine for $200,000 plus $10,000 in installation costs. They plan to sell the machine at the end of 3 years for $45,000. MACRS 3 year. With the more efficient machine they expect labor savings of $72,000, 102,000, and 70,000 respectively over the next 3 years. WACC 10.1% What is the net present value NPV and IRR internal rate of return for the project? Show Work

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