The York Company wants to buy a new stamping machine that costs $100,000.

The machine has an expected life of 10 years with a standard deviation of 2 years. York

will depreciate the machine over a 10-year period. The cost of running the machine is

$10,000 annually, and it generates $30,000 annual revenue. The company has income tax

rate of 30%, and it uses 10% as the discount rate. What is the probability that the machine

will break down within 8 years? If it runs for only 8 years, what is its NPV?