Holmes Manufacturing is considering a new michine that costs $285,000 and would reduce pretax manufacturing costs by $90,000 annually. The new machine will be fully depreciated a the time of purchase. Management thinks the machine would have a value of $23,000 at the end of its 5 -year cperating life. Net operating warking capital would increase by $25,000 initially, but it would be recovered at the end of the project's 5 -year ife. Hoimes's marginal tax rate is 25%, and a-10\% Wace is appropniate for the project. a. Calculate the tiroiect's NPV Negative value, if any, should be indicated by a minus sign. Do not round intermediate colculotions, Alound your answer to the nearest cent. 4 Celculate the oroject's thR. Do not round intermediate calculations. Round your answer to two decimal places. \% Calculate the nroject's MiRR. Do not round intermediate calculations. Round your answer to two decimal places. \% Calculate the aroject's paybeck, Do not round intermediate calculations. Round your answer to two decimal places. years b. Assume management is unsure about the $90,000 cost savings this figure could deviate by as much as plus ar minus 20%. What would the NPV be under each of these situations? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. 2006 savings increase: 1 20% savings decrease: 5 c. Suppose the CFO wants you to do a scenario analysis with different va ues for the cost savings, the machine's savege value, and the net operating working copital (NowC) requirement, she asks you to use the folowing probabilities and values in the scerario analys: Calculate the project's expected NPV, its standerd devation, and its coefncient of variation Negative valies, f ally, shovid be indicated by a minus sigt, Do not round iatermedate calculations. Bound your anwwer for expected NPV and for standard deviation to the nearest cent and for coefficient of variation to two decimal plares Would vou zecommend that the project be accepted