IBX Pty Ltd is considering the purchase of a new machine that is expected to save the company $81,000 at the end of each year in reduced wages.

The machine costs $261,000, plus another $17,000 to be installed. It is expected to last for five years after which it can be sold as scrap for $51,000. Operating expenses (such as fuel and maintenance) are $8,000 pa.

a)Determine the annual net cash flows of this investment (ignore the effect of taxes). Enter the information in the following table. Indicate whether cash flows are + or -:

Time	0	1	2	3	4	5
Net Cash Flow	?	?	?	?	?	?

b)Calculate the NPV if the required rate of return is 12% pa. Give your answer in dollars and cents to the nearest cent.

NPV_12% = $ ?

c)Calculate the NPV if the required rate of return is 14% pa. Give your answer in dollars and cents to the nearest cent.

NPV_14% = $ ?