1. Your company is deciding whether to invest in a new machine. The new machine will increase CF by $8 million per year. You believe the technology used in the machine has 8 year life (so, no matter when you purchase it it will be obsolete 10 years from today, not the day your investment starts). The machine is currently priced at $26 million. The price of the machine will decline by $5 million per year until it reaches $11 million, where it will remain. If your required return is 10%, should you purchase the machine? If so, when?