Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $306,000 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 $1,710,000. The cost of the machine will decline by $110,000 per year until it reaches $1,160,000, 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$

Should you purchase the machine?Yes OR No

If so, when should you purchase it?Today One year from now Two years from now