Problem #4: Budgets "UMPI Inc. is considering the purchase of a street paver machine for $225,000. The expected life of the machine will be three years, and it will have a salvage value of $25,000. Annual maintenance costs will total $7,500. Annual savings are predicted to be $92,500. The company's required rate of return is 8%. Ignoring the TVM, calculate the net cash inflow or outflow resulting from this investment opportunity. Be sure to prepare a schedule that clearly depicts the time frame of the cash flows. Factors: Present Value of $1 (r=8%) Year 0 1.0000 Year 1 0.9259 Year 2 0.8573 Year 3 0.7938 1) Using the Present Value Factors for $1 at 8% noted above (table provided for reference), calculate the net present value of this investment (ignoring taxes) 2) Based on your answer in requirement 1: should UMPI purchase the street paver machine? https://www.accountingtools.com/articles/present-value-of-1-table Present Value of 1 Table 20% 0.920 0.9804 0.9709 0.9615 0.9524 0.9434 0.9259 0.9091 0.8929 0.9803 0.9612 0.9-426 0.9246 0.9070 0.8900 0.8573 0.8265 07972 0.970 0.9423 0.915 0.8090 0.863 0.8396 5.7938 07517 07118 0.9610 0.9239 0.888 0.8548 0.8227 07921 07350 0.6830 0.6355 0.9515 0.9057 0.8620 0.8219 0783 07473 0.6209 05674 0.9421 0.8880 0.8375 07903 07462 07050 0.6302 0.5645 0.5066 0.9327 .8706 0.8131 7599 D.7107 0.6651 .5-835 0.5132 0.4524 0.9235 2.8535 07894 17307 0.676 0.6274 .5403 0.4665 0.4039 0,9543 08368 07026 0.6446 0 5910 0.5003 04241 0.3606 10 0.9053 0.8204 07441 0.6756 0.6139 0.5584 0,4632 0.3855 0.3230