Huon Cheese wants to buy a product wrapping machine to replace several employees. The outlay required is $300,000. The machine will be useful for five years at which time the organisation will upgrade. The machine will have a $91,000 expected salvage value. Huon Cheese will save $70,000 per year in employee salaries but the machine will need $5,000 of maintenance per year. e The cost of capital is 10 per cent and a payback period of 5 years is expected. Use the following present value table to help calculate your answer:- 9% 10% 11% Number of Periods 12 24 3e 0.917 0.842- 0.772 0.708 0.650e 0.909 0.826 0.7512 0.6834 0.621e 0.9012 0.812 0.731 0.6592 0.5932 T.T.T. 52 Required: a. Compute the payback period and explain whether Huon Cheese should accept or reject the purchase of the machine. (5 marks) b. Calculate the net present value (NPV) of the proposed machine and state whether Huon Cheese should accept or reject the investment. [5 marks] ott c Could there be any subjectivity in the calculation of a NPV? Explain your answer please. (5 marks] att Write a paragraph explaining the non-financial costs involved in the decision to purchase the machine. (Maximum 200 words). [5marks]