Problem 1:Watson Manufacturing has an opportunity to invest $96,000 in a new machine. The new machine will result in cost savings of $25,000 in year 1, $25,000 in year 2, $25,000 in year 3, $25,000 in year 4, and $25,000 in year 5.The new machine will require a tune-up in year 3 costing $3,000.The salvage value of the machine will be $10,000 at the end of year 5.Watson's cost of capital is 10%.Build a table showing the cash flows in each year of the project and compute the NPV.

The NPV is ____?

Is the Investment acceptable _____?