Lovewell Limited a food manufacturer is considering purchasing a new machine for EETSQGU. The company is expecting an annual cash inow of 85,00D from the sale of products and an annual cash outflow of 12,500 for each of the six years of the machine's useful life. The annual cash outflows do not include annual depreciation charges for the machine. The machine is depreciated using the straight |ine method. The machine is expected to last for six years, with a residual value estimated to be at the rate of 15% of the original cost of the machine. The cost of caoital for Lovewell Limited is 12%