Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $330,000 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 $1,850,000. The cost of the machine will decline by $120,000 per year until it reaches $1,250,000, where it will remain.

If your required return is 12 percent, calculate the NPV today.(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV$

If your required return is 12 percent, calculate the NPV if you wait to purchase the machine until the indicated year.(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

NPV

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6