Your company is considering the purchase of a new machine for production

The following numbers show the various cost required

$\backslash$table$[[$Annual reduction in scrap,$7,300\mathrm{.}00,($reduction in scrap cost with the new machine$)],[$Cost of new machine,$219,000\mathrm{.}00,],[$Cost of new software,$19,000\mathrm{.}00,],[$Labor cost savings per year,$116,000\mathrm{.}00,],[$Life of machine in years,$6\mathrm{.}00,],[$Annual maintenance costs,$35,000\mathrm{.}00,],[$Required overhaul year $3,50,000\mathrm{.}00,],[$Salvage value new machine in $6$ years,$26,000\mathrm{.}00,],[$Salvage value of current equip,$11,000\mathrm{.}00,],[,,],[$Annual Required rate of return,$12\%,]]$

REQUIRED

$5.$ Would you purchase the new machine? Explain your decision.