Question 4 6 pts A wealthy businessman, Bart Sampson, is considering an investment in a new machine into the business. He has three alternatives to pay for the machine. He can pay more for the machine now but this includes most of the maintenance costs, or pay less for the machine now and pay more for maintenance costs over the useful life of the machine. The machine is expected to have a $nil residual value at the end of its useful life. Details of the proposed costs of the alternatives are listed below. For instance, for Alternative 1 the initial investment is $500,000 and the after tax cost of maintenance is $15,000 p.a. (per annum). Year Alternative 1 Alternative 2 Alternative 3 initial Investment 0 -$500,000 -$400,000 -$350,000 After tax maintenance costs 1 -$15.000 -$20,000 -$35,000 2 -$15,000 -$20,000 -$35,000 3 -$15,000 -$20,000 -$35,000 4 -$15,000 -$20,000 -$35,000 5 -$15,000 -$20,000 -$35,000 He comes to you for advice. His required rate of return is 8% per annum. Please use discount factors from formula sheet. Required: Ignore taxes when answering the requirements. (a) Calculate the Net Present Value (NPV) of the cash flows for each of the three alternative investment opportunities using a discount rate of 8% per annum. Assume all cash flows are at the end of the year for the calculations. Round your answer to two decimal places. (0) Calculate the NPV for Alternative 1. Enter the NPV in number only in the following box for Alternative 1. 0 . (ii) Calculate the NPV for Alternative 2. Enter the NPV in number only in the following box for Alternative 2. (iii) Calculate the NPV for Alternative 3. Enter the NPV in number only in the following box for Alternative 3