The Carroll Broom Company is thinking of purchasing a new automatic straw$-$binding

machine. The company president, Joan Carroll, has determined that such a machine

would save the company $$10,000$ per year in labor costs. The machine would cost

$$46,500$ and would have a useful life of $10$ years and a scrap value of $$500.$ The

machine would require servicing after five years at a cost of $$1,000.$ Carroll uses a

discount rate of $16\%.$ Compute the net present value. From a quantitative standpoint,

should the machine be purchased?