Hi Grade Tool Company is faced with the prospect of having to replace a large stamping machine. Two machines currently being marketed will do the job satisfactorily. The Superior Stamping machine costs $50,000 and will require cash operating expenses of $20,000 per year. The Peerless machine costs $75,000, and the operating expenses are $15,000 per year. Both machines have a tenyear useful life with no salvage value and would be depreciated on a straight-line basis. If the company pays a 30 percent tax rate and has a 12 percent after-tax required rate of return, which machine should be purchased? Answers are NPV(Superior) = 17,802.68; NPV (Peerless) = 16,816.12 . How do I get to these answers??