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(Net present value analysis). Architect Services Inc, would like to purchase a blueprint machine for $50,000. The machine is expected to have a life of

(Net present value analysis). Architect Services Inc, would like to purchase a blueprint machine for $50,000. The machine is expected to have a life of 4 years, and a salvage value of 10,000. Annual maintenance costs will total $14,000. Annual savings are predicted to be $30,000. The companies required rate of return is 11%.

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  1. Ignoring the time value of money. Calculate the net cash inflow or outflow resulting from this investment opportunity?
  2. Should the company purchase the blueprint machine? Explain why or why not?

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