Jack & Jill's Arcade is considering investing in new game machines for the manufacture of Dirdek. The new equipment will cost $1,000,000, will provide annual cost savings of $190,000 per year for five years and is expected to be sold for $50,000 at the end of its useful life. The company requires a 10% return on its investments.

1. What other factors should they consider before making a final decision?

2. Calculate the NPV using Excel