Maryville Cleaners has the opportunity to invest in one of two dry cleaning machines. Machine A has a four-year expected life and a cost of $40,000. It will cost an additional $10,000 to have the machine delivered and installed, and the expected residual value at the end of four years is 52,000. Machine B has a four-year expected life and a cost of $60,000. It will cost an additional $15,000 to have the machine delivered and installed, and the expected residual value at the end of four years is $5,000. The company has a required rate of return of 10 percent. Additional cash flows related to the machines are as follows: Machine A Item Labor savings Power savings Chemical savings Additional maintenance costs Additional miscellaneous costs Year 1 $10,000 1,500 3,000 (1 200) (2,500) Year 2 $15,000 1,500 3,000 (1,200) (2,500) Year 3 $20,000 1,500 3,000 (1,200) (2,500) Year 4 $25,000 1,500 3,000 (1,200) (2,500) Machine B Item Labor savings Power savings Chemical savings Additional maintenance costs Additional miscellaneous costs Year 1 $20,000 2,000 3,500 (1,500) (3,000) Year 2 $25,000 2,000 3,500 (1,500) (3,000) Year 3 $30,000 2,000 3,500 (1,500) (3,000) Year 4 $35,000 2,000 3,500 (1,500) (3,000) Requirement 1: Compute the payback period for each of the two machines. Machine A Particulars Cost Installation & Delivery Total Cash Outflow Amount 40,000 $10,000 $50,000 Year 1 Machine A Net Cash Inflow Particulars Labor Savings Power Savings Chemical Savings Additional Maintenance Cost Additional Misc Cost Salvage Value (Inflow) Net Cash Inflow Year 2 $10,000 $1,500 $3,000 ($ 1,200) ($2.500) Year 3 $15,000 $1.500 $3,000 ($1,200) (52,500) Year 4 $20,000 $1,500 $3,000 ($1,200) ($2,500) $25,000 $1,500 $3,000 ($1,200) {$2,500) 2000 $27,800 $10,800 $15,800 $20,800 Calculation Payback for Machine A Cash Inflow Year Year 0 Year 1 Year 2 Year 3 Year 4 Recovery Left Opening - Next Years Inflow 50,000 $10,800 39,200 $15,800 23.400 $20,800 2,600 $27,800 days 46 1 month 15 days Machine A payback period 2 years 1 month 15 days Machine B Particulars Cost Installation & Delivery Total Cash Outflow Amount 60,000 $15,000 $75,000 Calculation Payback for Machine B Cash Inflow Year Year 0 Year 1 Year 2 Year 3 Year 4 33 1 month 2 days Machine B payback period Recovery Left Opening - Next Years Inflow 50,000 $21,300 28,700 $26,300 2,400 $31,300 $41,300 days 2 years 1 month 2 days Requirement 2: Compute the net present value for each of the two machines. Cquestion please show step by step