Net Present Value Method (NPV) 379,100 5 Years Net initial investment Useful life Annual Cash Inflow Required Rate of Return 100,000 8% Present value of cash flow Presnet value of $1 disoucnted at 8% (Appemndix A) Net initial investment 0.926 0.857 0.794 0.735 0.681 NPV if new amchine purchased H Net Present Value Method (NPV) resnet value of $1 disoucnted at 8% (Appemndix A) Sketch of relevant Cash Flows at End of Each Year 1 2 3 4 1 -379,100 0.926 100,000 100,000 0.857 0.794 0.735 100,000 100,000 0.681 100,000