Home whitegoods manufacturer, Fresh Ltd, is evaluating the purchase of a new machine that will cost \($580\) 000 and be paid for in cash. The machine will be depreciated over 10 years with a resale value at the end of \($60\) 000. Annual before-tax cash savings from better productivity are expected to be \($60\) 000. The company has a cost of capital of 10%. Assume an income tax rate of 30%.
Required

(a) Determine the annual after-tax cash savings from the machine.

(b) What is the payback period for the investment?

(c) What is the net present value of the investment?