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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $328,000 per year. You believe the

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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $328,000 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.) -42 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.) es NPV Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 LA LA LA LA LA LA Should you purchase the machine? O Yes O No

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