Your company is deciding whether to invest in a new machine. The new machine will

increase cash flow by $$326,000$ 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 $$1,760,000.$ The

cost of the machine will decline by $$111,000$ per year until it reaches $$1,205,000,$ where it

will remain.

If your required return is $13$ percent, calculate the NPV if you purchase the machine

today. What is the NPV if you wait to purchase the macine until each year indicated

below? $($Do not round intermediate calculations and round your answers to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$

Should you purchase the machine?

Yes

No

If so$,$ when should you purchase it$?$

Today

One year from now

Two years from now