Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specied that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Initial Cost $160,000 Year 0 One-time Setup Cost $55,000 Year 1 Annual Operating & Maintenance Per yea r, forever Costs First in Year 4, then every 4 years Major Maintenance Costs forever Question 5 Part A: What is the equation used to nd the portion clue to the Nonrecurring Costs (the costs that do not repeat)? 0 160,000 + 55,000(P/F, 5%, 1) 0 160,000 + 55,000(F/P, 5%, 1) 0 160,000 + 55,000(P/F, 5%,1) + 30,000(P/F, 5%, 4) O 160,000 + 55,000(F/P, 5%, 1) + 30,000(F/P, 5%, 4) Your company decides to invest in a project to purchase and install an automated data processing machine for a supplier. The company that is selling the automated data processing machine has specied that the automated data processing machine needs to last forever, and will always be operational. The associated costs for the machine are shown in the table below. How much should you charge your supplier for the automated data processing machine in order to install and maintain the perpetual project? Interest rate is 5%. Costs Amount Year Incurred Initial Cost $160,000 Year 0 One-time Setup Cost Year 1 Annual Operating & Maintenance Per year, forever Costs First in Year 4, then every 4 years forever Major Maintenance Costs $30,000 Question 5 Part B: What is the equation used to nd portion of the cost due to the Recurring Cost (major maintenance costs)? 0 [30,000(A/ F, 5%, 4)]/0.05 O [30,000(F/A, 5%, 4)]/0.05 O [30,000(F/A, 5%, 8) The cash ows for your rm's project are provided in the table below. When initially nding the rate of return for the project, you see that there are two possible positive rates of return. Find an appropriate ROR to use if the company borrows money at 7% and invests money at 15%. If the company uses a MARR of 10%, should this project be funded? (in millions of $) -4.00 1.00 2.00 3.00 3.00 2.00 1.00 Question 4 Part C: Provide the computed MIRR for this project. Enter your answer in the form: 12.34 (for a MIRR of 12.34%, enter 12.34)