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 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., 32.16.) Purchase today Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Should you purchase the machine? Yes The manager for a growing firm is considering the launch of a new product. If the product goes directly to market, there is a 40 percent chance of success. For $177,000, the manager can conduct a focus group that will increase the product's chance of success to 55 percent. Alternatively, the manager has the option to pay a consulting firm $392,000 to research the market and refine the product. The consulting firm successfully launches new products 70 percent of the time. If the firm successfully launches the product, the payoff will be $1.92 million. If the product is a failure, the NPV is $0. Calculate the NPV for each option available for the project. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g. 1,234,567.) Go to market now Focus group Consulting firm Which action should the firm undertake? O Focus group O Go to market now O Consulting firm