Required:

a. Ignoring the time value of money, calculate the net cash inflow or outflow resulting from this investment opportunity.

c. Should the company purchase the blueprint machine? Explain.

Net Present Value Analysis. Architect Services, Inc., would like to purchase a blueprint machine for $50,000.The machine is expected to have a life of 4years, and a salvage value of $30,000. Annual maintenance costs will total $14,000.Annual savings are predicted to be $30,000. The company's required rate of return is 11 percent. Timelinelnl I Todav Yeari 'Yearz Year3 Year-'1 NP!\"Ir P urcha 5 9 Price maintenance Cost - $14,000 Labour Savings 's' gm Salvage 'v'alue TotalL'ashinluut} {swam} $15;m $16M $16999 PV factor [r = 11% Present'v'alue