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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$

Should you purchase the machine?

Yes

No

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

Today

One year from now

Two years from now