Sambus Inc. would like to purchase a production machine for $405,000. The machine is expected to have a life of three years, and a salvage value of $20,000. Annual maintenance costs will total $4,500. Annual savings due to the use of this machine are predicted to be $161,000. The company's required rate of return is 8 percent.

Sambus Inc. would like to purchase a production machine for $405,000. The machine is expected to have a life of three years, and a salvage value of $20,000. Annual maintenance costs will total $4,500. Annual savings due to the use of this machine are predicted to be $161,000. The company's required rate of return is 8 percent Required: A. Calculate the net present value of this investment (ignoring taxes). B. Based on your answer in requirement 1, should Sambus purchase the production machine? Your answers to this open-ended assignment should be placed in the space below this line. D Today Year 1 Year 2 Year 3 Purchase of machine Annual savings Maintenance costs Salvage value Total cashflow Present value factor Present values Net Present Value Double click and put your answer here. B B