Durkin Lab plans to purchase a new centriluge machine for its Arizona facily. The machine costs $22.5,000 and is expected to have a useful life of 10 yoars with a terminal disposh value of 53,000 . Savings in cash operating costs are expected to be 548500 per yoar. However, additional woeking capital is needed to keep the machine tunning efficiently. The working capital must continually be replaced, so an investment of $39,000 needs to be maintaned at all firnes, but this investenent is fully recoverable (will be "cashed in") at the end of the ugeful life. Dunkin Lab's required rate of yeturn is 10%. Ignoce income taxes in your onalysis Assume all casti flows occur at year-end except for in intial investment amounts. Durkin Lab uses straight line doneaciation fne iss machinat Pineant Value of 51 lable Read the requionments Requirement 1. Calculate net present value IV, Requirements present value of the investment rounded to the n. The net present value is 1. Calculate net presept vatue: 2. Caloutati internal rate of return 3. Calcutate accrual accounting rate of reburn based on net inaiar imveatmant. 4. Calculate accrual accounting rate of return besed on average investment 5. You bave the authoity to make the pouchase decibon Why milght you be revelait to base your dechion on the DCF mathods? Reference