Warden co plans to buy a new machine. the cost of the machine, payable immediately, P800 000, and the machine has an expected life of 5 years. additional investment in working capital of P90 000 will be required at the start of the first year of operation. At the end of 5 years, the machine will be sold for scrap l, with the scrap value expected to be 5% of the initial purchase cost of the machine. the machine will not be replaced. production and sales from the new machine are expected to be 100 000 units per year. each unit can be sold for p16 per unit and will incur variable costs of p11 per unit. Incremental fixed costs arising from the operation of the machine will be P160 000 per year. Warden Co has an after-tax cost of capital of 11%, which it uses as a discount rate in investment appraisal. the company pays profit tax one year in arrears at an annual rate of 30% per year. Tax-allowable depreciation and inflation should be ignored. calculate the net present value of investing in the new machine and advise whether the investment is financially acceptable