Wednesday Company produces several products - one of which is light bulbs. Expected sales volume are:

	2021	2022	2023	2024
Sales Units	12,000	21,000	18,000	20,000

The management is evaluating the possibility of installing automated machine. The new cost structure are: total unit variable cost is $24 and depreciation is the only fixed cost.

The initial investment in a new machine of $420,000 at the beginning of 2021. The machine has an expected useful life of 4 years with $50,000 residual value. Straight line depreciation method is used and the machine will be sold at the residual value at the end of the expected useful life.

3) Calculate the payback period for the machine assuming that the cash flows are evenly distributed within the year.

4) Assume all cash flows occur at the end of the year. Using the Present value (NPV) table provided in your Chapter 11 notes, calculate the NPV for the machine if the required rate of return is 12%. You are required to show the PV for every year in a table format (with working) during the period of 2021 to 2024 HORIZONTALLY.