Problem 4 Spartaret Industries is considering the purchase of a new assembly machine The machine will supplement a currently labor-intensive assembly process Term The current planning period is 10 years Over the next Ten (10) Years>>>>>>>>>>>>>>>> ($8,000,000) CHOICE A: Purchase assembly machine Purchase equipment for Cash Cost Today is Over the next 10 years each year Annual reduction in Direct Labor Cost (savings) Annual cost of machine maintenance per year (expense) $1,300,000 ($100,000) In Year 10 Machine is sold for cash $600,000 CHOICE B: Do not purchase the machine and maintain current operations The Cost of Capital (discount rate) is Use the Provided Tables to Complete Should Sparteret purchase the machine