Requirements 3,4 please. Cabateen Natural Snacks is contemplating an expansion. The finance manager is looking at buying a second machine that would cost $80,000 and last for 10 years, with no disposal value at the end of that time. Cabateen expects the increase in cash revenues from the expansion at $28,500 per year, with additional annual cash costs of $16,000. Cabateen's cost of capital is 8%, and the company pays no taxes because of its location in a special economic zone.

Requirement 3. The finance manager thinks that costs will vary with revenues, and if the revenues are 10% higher, the costs will be 7% higher. If the revenues are 10% lower, the costs will be 10% lower. Recalculate the NPV and IRR at the high and low revenue points with this new cost information. Begin by calculating the net present value of the investment at the high point for revenue. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and enter the net present value of the investment rounded to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value (NPV) at the high point for revenue is Now calculate the internal rate of return for the investment at the high point for revenue. (Use straight-line interpolation as necessary. In calculations, use factors to three decimal places, X.XXX. Do not round intermediary calculations. Round the internal rate of return to the nearest hundredth percent, X.XX%.) The internal rate of return (IRR) at the high point for revenue is %. Now calculate the net present value of the investment at the low point for revenue. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and enter the net present value of the investment rounded to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value (NPV) at the low point for revenue is Calculate the internal rate of return for the investment at the low point for revenue. (Use straight-line interpolation as necessary. In calculations, use factors to three decimal places, X.XXX. Do not round intermediary calculations. Round the internal rate of return to the nearest hundredth percent, X.XX%.) The internal rate of return (IRR) at the low point for revenue is %. Requirement 4. The finance manager has decided that the company should earn 2% more than the cost of capital on any project. Recalculate the original NPV in requirement 1 using the new discount rate and evaluate the investment opportunity. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and enter the net present value of the investment rounded to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is