Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $$329,000$ per year. You believe the technology used in the machine has a $10-$year life; in other words, no matter when you purchase the machine, it will be obsolete $10$ years from today. The machine is currently priced at $$1,700,000.$ The cost of the machine will decline by $$100,000$ per year until it reaches $$1,200,000,$ where it will remain.

If your required return is $14$ percent, calculate the NPV today. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

If your required return is $14$ percent, calculate the NPV for the following years. $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$ A negative answer should be indicated by a minus sign.$)$

Should you purchase the machine?

multiple choice $1$

Yes

No

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

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

increase cash flow by $$329,000$ 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 $$1,700,000.$ The

cost of the machine will decline by $$100,000$ per year until it reaches $$1,200,000,$ where

it will remain.

If your required return is $14$ 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 $14$ percent, calculate the NPV for the following years. $($Do not

round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.$ A negative answer should be indicated by a minus sign.$)$

Should you purchase the machine?

Yes

No

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

Today

One year from now

Two years from now choice $2$

Today

One year from now

Two years from now