P10-6 NPV for varying costs of capital Empire Hotel is considering acquiring new flat-panel displays to replace the antiquated computer terminals at the registration desk. The new computer displays require an initial investment of $235,000 and will generate after-tax cash inflows of $65,000 per year for 5 years. For each of the costs of capital listed, (1) calculate the net present value (NPV), (2) indicate whether to accept or reject the m achine, and (3) explain your decision.

a. The cost of capital is 8%.

b. The cost of capital is 10%.

c. The cost of capital is 15%