Salia Manufacturing Inc [SMI] makes parts for the rail industry. Although the rail industry has been somewhat volatile over the years SMI is currently very busy and operating at full capacity. SMI has an opportunity to purchase a new piece of equipment (a B265} that is more flexible than their current machine allowing them to produce various kinds of parts rather thanjust one. The 3266 is also faster than the old machine with an increased production capacity of 30%. SMI has determined that they can swap out the old machine for the 8266 very quickly so they would not lose any of their currentjobs. However, there would be a oost of 10000 to dispose of the old machine and an estimated cost of terminating three operators of 60000. Reduced wage costs are estimated at 210000 per year as the number of people involved in manufacturing would drop from 9 to 6. Maintenance oosts on the B260 are forecasted at 7500 per year for the final 6 years while the rst year is covered by warranty. Maintenance costs on the current machine average 12500 per year. Utility costs are expected to decrease by 1400 per month. Rachel Salia would have to borrow 150000. which, along with her current cash in the bank, would give her enough to purchase the B266 at a cost of 650000. The purchase payment is due in two payments, one upfront and the second one of175000 at the end ofyear one. Annual interest payments on the loan are payable at the end of each year for 5 years at an annual loan interest rate of 7 96. There is a lump sum principal repayment at the end of year 5 for the whole loan. The estimated life on the B265 is 7 years with an estimated salvage value of 50000. Her current machine would also last 7 years but would require repairs at the end of year estimated at 5500 in year 1, 3000 in year 3, 9500 in year 5, and 11500 in year '4'; it will have no residual value. Salia requires a 14% rate of return on all investn'ients. What is the NPV If SMI decides to purchase the 6266'? Show your work detailing the solution to this question In the mandatory Excel spreadsheet on Moodle called "Final Exam Salia Manufacturing Question mandatory template" and upload your Exoel spreadsheet Into the Final Exam Upload Folder {20 marks]. Providing the NW without showing your work in the Excel spreadsheet is worth zero