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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $275,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine is currently priced at $1.8 million. The cost of the machine will decline by $140,000 per year until it reaches $1.1 million, where it will remain. If your required return is 8 percent, calculate the NPV today. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 45,272.40 If your required return is 8 percent, calculate the NPV for the following years. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) NPV Year 1 $ Year 2 $ Year 3 $ (57,894.20) 60,325.70 51,751.80 31,291.90 2,004.70 49,165.12 Year 4 $ Year 5 $ Year 6 $ Should you purchase the machine? Yes No If so, when should you purchase it? Today One year from now Two years from now Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $275,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine is currently priced at $1.8 million. The cost of the machine will decline by $140,000 per year until it reaches $1.1 million, where it will remain. If your required return is 8 percent, calculate the NPV today. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 45,272.40 If your required return is 8 percent, calculate the NPV for the following years. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) NPV Year 1 $ Year 2 $ Year 3 $ (57,894.20) 60,325.70 51,751.80 31,291.90 2,004.70 49,165.12 Year 4 $ Year 5 $ Year 6 $ Should you purchase the machine? Yes No If so, when should you purchase it? Today One year from now Two years from now