rte your answer in the space provided or on a separate sheet of paper. Kravitz Company is planning to acquire a $250,000 machine to improve manufacturing etficiencies, thereby reducing annual cash operating costs (before taxes) by $80,000 for each of the next five years. The company's estimated weighted-average cost of capital (WACC) is8% The machine will be depreciated using straight-line method over a five-year life with no salvage value. Fritz is subject to a combined 40% income tax rate. Required: 1. What is the estimated net present value (NPV) of the proposed investment? 2) In producing 700 units of product last period, Azure Company used 5,000 pounds of Material K costing $34,250. The company has established the standard of using 7.2 pounds of Material K per unit of product, at a price of $7.50 per pound. Calculate the materials price and quantity variances associated with producing the 700 units, and indicate whether they are favorable or unfavorable 3) Quinta Inc. manufactures machine parts for aircraft engines. The CEO is considering an offer from a subcontractor who would provide 2,800 units of product QR128 for a price of S190,000. If Quinta does not purchase these parts from the subcontractor it must produce them in-house with the following costs: Direct Materials Direct Labor Variable Overhead Allocated Fixed Factory Overhead S22 18 14 16 Allocated Fixed Selling Costs $75 Total Cost If Quinta produces part QR128, there would also be incremental fixed costs of $13,000 per eriod. Should Quinta Inc. accept the offer from the subcontractor