following savings in cash operating costs are expected to be s23.500 per year. However, additional working capital is needed to maintain the operations of the rendering machine. The working capital must continually be replaced, so an investment of Harriman Inc. is considering the purchase of a new rendering machine for its animation facility. The machine costs $79,000 and is expected to have a useful life of eight years, with a terminal disposal value of S23,000. The plant manager estimates the $9,500 needs to be maintained at all times, but this investment is full recoverable will be "cashed in' at the end of the useful life. Harriman Inc.'s required rate of return is 14%. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. Harriman Inc. uses straight-line depreciation for its machines. (Click the icon lo view the present value of $1 factors.) Click the icon to view the present value annuity of $1 faclors.) Required Requirement 1. Calculate NPV. (Use factors rounded to three decimal places. Round your final answer to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value. The NPV is Required 1. 2. 3 Calculate NPV. Calculate IRR. Calculate AARR based on net initial investment Calculate AARR based on average investment You have the authority to make the purchase decision. Why might you be reluctant to base your decision on the DCF methods? 4. 5. Print Done