Directors of Cootha Constructions Ltd are considering the purchase of a new machine The machine will cost $90 000 There will be net cash inflows in each of the three years of: Year 1: $42 000, Year 2: $45 000 and Year 3: $30 000 The machine is thought to have a residual value of $15 000 at the end of year 3 The required rate of return (RRR) is 20% Discount Rate (r) Period 6% 8% 10% 12% 14% 16% 18% 20% 0 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 23 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 4 0.792 0.735 0.683 0.636 0.592 0.562 0.516 0.482 1. What is the first (1) year value of NPV? 2. What is the second (2) year value of NPV? 3. What is the third (3) year value of NPV? 4. The total NPV = 5. If the total NPV was negative, would we accept the investment? 6. If the NPV was negative and the ARR and PP were positive would we accept the investment