Question Mazaje (Nig.) Itd is contemplating the purchase of a new machine for N160,000 which will complement the use of an older machine which cost N100, 000 two years ago and has a current book value of N60, 000. The following information are also given: 1) The annual sales are estimated at 5000 units with sales price of N32/unit. The unit cost unit of production is N24. 2) The new machine will have an expected useful life of 5 years and a residual value of N25, 000. 3) Labour resource is in short supply and will therefore be sourced from other cost centre in house at N1.50/hr. for four hrs. 4) Working capital requirements would be N10,000 in year one, but will rise to N7,500 from the second year upwards until the end when it will fully be recovered 5) Mazaje's cost of funds is 18% Required: a) Compute the NPV of this investment b) Advise Baze management accordingly