Stirling Windows Inc. of Hong Kong is considering purchasing an automated cutting machine for use in the production of its stained-glass windows The machine would cost 5990,000. (All currency amounts are in Hong Kong dollars.) An additional $600,000 would be required for installation costs and for software Management believes that the automated machine would provide substantial annual reductions in costs, as shown below Annual Reduction in Costs $160,000 85,000 Labour costs Material costs The new machine would require considerable maintenance work to keep it in proper adjustment The company's engineers estimate that maintenance costs would increase by $4,150 per month if the machine were purchased. In addition, the machine would require a $83,000 overhaul at the end of the fifth year e new cutting machine would be usable for nine years, after which it would be sold for its scrap value of $220,000. It would replace an old cutting machine that can be sold now for its scrap value of $68,000 Stirling Windows requires a return of at least 8% on investments of this type (Ignore income taxes) Required: 1. Compute the net annual cost savings promised by the new cutting machine Annual net cost savings 2-a. Using the data from requirement 1 above and other data from the problem, compute the new machine's net present value (Use the incremental-cost approach.) (Hint. Use Microsoft Excel to calculate the discount factor(s)) (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Negative amount should be indicated by a minus sign.) Net present value