MILA Home Company planning to purchase a special machine capable to do certain operations that are now performed manually. This machine will cost $135,000, and it will last for four years. At the end of the fourth year period, the machine will have reudual value of zero. Moreover, use of the machine will reduce labour costs by S78,000 in year 1, $75,000 in year 2. $71,000 in year 3, and $68,000 in year 4. MILA Home Company requires a minimum return of 25 percent before taxes on all investment project Required: a) should the machine be purchased? Use the net present value method in your calculation. (13 marks) PV of Future Cost Savings Future Cost Savines 0.8 Year 1 Year 2 Year 3 Year 4 Total NPV Calculation: PV of Future Cost Savings Less: Initial Cost of Investment Activate Windo Go to Settings to ac Predictions: On 100% +