Problem #1 Dyno-Max Company, Inc., is considering buying a new water treatment system. The investment proposal passed the initial screening tests [payback period and rate of return ] so the company wants to analyze the proposal using the discounted cash flow methods. The water treatment system will cost $ 48,000, has a five-year life, and no residual value. The estimated net cash inflows from environmental cleanup activites are estimated at $ 13,000 per yer and the required rate of return is 16% Required: 1 Compute the water treatment system's NPV. 2 Should Dyno-Max Company, Inc., buy the water treatment system? Why? 16% 16% Present Value of $ 1 Present Value of Annuity of $ 1 1 1 2 3 2 3 4 4 5 5 0.862 0.743 0.641 0.552 0.476 0.41 0.354 0.305 0.263 0.227 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 6 6 7 7 8 8 9 9 10 10