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PROBLEM #4-CAPITAL INVESTMENT ANALYSIS (2 pts.) Belotti Company is reviewing a proposal to purchase a machine to produce a new product. Data related to the

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PROBLEM #4-CAPITAL INVESTMENT ANALYSIS (2 pts.) Belotti Company is reviewing a proposal to purchase a machine to produce a new product. Data related to the proposal are as follows. oduct. Data related to the $41,400 Annual revenue Annual cash expenses Cost of machine Cost of machine installation/ testing Project life Discount rate Salvage value 30,500 32,000 3,000 5 years 15% $0 Required:1.Compute the project's net present value. 2. Should Belotti Company purchase the machine? 1

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