Question: Can you help me with this question and answer step by step Company X manufactures birdhouses and have painted the houses partly manually. Company's growth

Can you help me with this question and answer step by step

Can you help me with this question and answer step by step

Company X manufactures birdhouses and have painted the houses partly manually. Company's growth prospects seem promising and the company is considering on investing to a new fully automatic paintmachine. \begin{tabular}{|l|r|r|} \hline & Annual costs & \\ \hline Now: & Painter's salary and expenses & 25000 \\ \hline & Maintainance & 5000 \\ & Old machine in balance sheet & 15000 \\ & Excpected value if the machine is sold & 12000 \\ & & \\ \hline & & 67500 \\ \hline New machine: & Price of the machine & 12000 \\ & Installation & 4000 \\ & Training & 5500 \\ & Upkeep (annually) & 750 \\ & Insurance (annually) & 0 \\ \hline & Disposal value & \\ \hline \end{tabular} Calculate the profitability of the investment by using IRR, NPV and PP The company will use discount factor of 12% Life cycle of the machine is 5 years

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