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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $327,000 per year. You believe the

Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $327,000 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 $1,770,000. The cost of the machine will decline by $110,000 per year until it reaches $1,220,000, where it will remain. If your required return is 13 percent, calculate the NPV today. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV $

If your required return is 13 percent, calculate the NPV for the following years. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Negative amounts should be indicated by a minus sign.)

NPV

Year 1 $

Year 2 $

Year 3 $

Year 4 $

Year 5 $

Year 6 $

PLEASE FOLLOW INSTRUCTIONS ON ROUNDING DECIMALS, PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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