HRM732 - Introduction to Financial & Management Accounting Case #4 - Due August 8, 2022 (Worth 10%) Team Members Notification (changes only) - August 1, 2022, 2022 Lifetime Inc. wants to buy a new machine to be used in production that will replace an existing manual system. The cost of the new machine is $2,990,000. The equipment will last six years with no expected salvage value. The expected cash flows related to the implementation of the new machine is below. Year 1 2 3 4 5 6 Cash Inflows $1,600,000 Cash Outflows $950,000 1,600,000 950,000 1,600,000 950,000 1,600,000 950,000 1,600,000 950,000 1,600,000 950,000 Lifetime Inc's required rate of return is 10% Required: a) Explain the concept of capital budgeting b) Discuss the advantages and disadvantages of non-discounted and discounted capital budgeting approaches c) Using both non-discounted and discounted capital budgeting approaches, determine if the company should replace the existing manual system with the purchase of this machine