Question: EZ Corporation is considering purchasing an automated sorting machine for their warehouse. The machine would cost $2,000,000 and has an estimated useful life of 10

 EZ Corporation is considering purchasing an automated sorting machine for their

EZ Corporation is considering purchasing an automated sorting machine for their warehouse. The machine would cost $2,000,000 and has an estimated useful life of 10 years. Management estimates that the new machine will provide net annual cash inflows of 655,000 and net annual cash outflows of $320,000. The company is expecting a salvage value of $50.000 at the end of the machine's useful life, and a maintenance expense of $250,000 at the end of year 4. Assume a discount rate of 9% Required: (8 Marks) ) Calculate the payback period in number of years B) Calculate the Net Present Value (NPV) B) Should the company move forward with the project and why

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