You company is deciding whether to invest in a new machine. The new machine will increase cash flow by $$485,000$ per year. You believe the technology used in the machine has a $10-$year life; in other words, no matter when you purchase the machine, it will be obsolete $10$ years from today. The machine is currently priced at $$2\mathrm{.}95$ million.

The cost of the machine will decline by $$315,000$ per year until it reaches $$1\mathrm{.}375$ million, where it will remain.

If your required return is $8$ percent, calculate the NPV today. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

NPV

$

$304,389\mathrm{.}48$

References

If your required return is $8$ percent, calculate the NPV if you wait to purchase the machine until the indicated year. $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

NPV

Year $1$

$

Year $2$

$

Year $3$

$

Year $4$

Year $5$

Year $6$

$