Determining the net present value Misty Higgin, manager of the Hass Music Hall, is considering the opportunity to expand the company's concession revenues. Specifically, she is considering whether to install a popcorn machine. Based on market research, she believes that the machine could produce incremental cash inflows of $3, 200 per year. The purchase price of the machine is $8, 500. It is expected to have a useful life of three years and a $2, 500 salvage value. Ms. Higgin has established a desired rate of return of 16 percent. Required a. Calculate the net present value of the investment opportunity. b. Should the company buy the popcorn machine