Question: A company is considering expanding their production capabilities with a new machine that costs $ 3 1 , 0 0 0 and has a projected

A company is considering expanding their production capabilities with a new machine that costs $31,000 and
has a projected lifespan of 6 years. They estimate the increased production will provide a constant $5,000 per
year of additional income. Money can earn 1.8% per year, compounded continuously. Should the company buy
the machine?
A) No, the present value of the machine is less than the cost by [number] over the lifetime of the machine.

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