Initial investment is $$3,000,000$; cash inflows are $$365,000$ per year.

LG$3$

P$10-7$ NPV for varying costs of capital Le Pew Cosmetics is evaluating a new fragrance$-$mixing machine. The machine requires an initial investment of $$360,000$ and will generate cash inflows of $ for eight years. For each of the costs of capital listed, $(1)$ calculate the net present value $($NPV$),(2)$ indicate whether to accept or reject the machine, and $(3)$ explain your decision.

The cost of capital is $6\%.$

The cost of capital is $8\%.$

The cost of capital is $10\%.$