Exercises: Set A 29. Net Present Value Analysis. Excavating, Inc, would like to purchase a tractor for $200,000. The tractor is expected to have a life of 5 years, and a salvage value of $10,000. Annual maintenance costs will total $40,000. Annual net cash receipts resulting from this machine are predicted to be $90,000. The company's required rate of return is 15 percent. Required: a. Ignoring the time value of money, calculate the net cash inflow or outflow resulting from this investment opportunity. b. Find the net present value of this investment using the format presented in Figure 8.2. Round all calculations to the nearest dollar. c. Should the company purchase the tractor? Explain. 30. Internal Rate of Return Anaheir Cuir