y1 y2 y4. Capital Budget Johnson & Johson Company is thinking to purchase a machine to replace to current labour. The machine will cost $5,000 and it will last 5 years with no residue value. Once the machine is used, the company will save $1,800 per year labour cost. The annual discount rate is 20% Should we do it or not? Machine Labour Cost saving Labour Cost saving Labour Cost saving Labour Cost saving Labour Cost saving Total Saving in Syears inflation rigt now 4 Time value of money interest rate present value 1.2 1-(1+0.2) 12 F equal repe