Net Present Value Analysis. Architect Services, Inc., would like to purchase a blueprint machine for $50,000. The machine is expected to have a life of 4 years, and a salvage value of $10,000. Annual maintenance costs will total $14,000. Annual savings are predicted to be $30,000. The company's required rate of return is 11 percent. A: Ignoring the time value of money, calculate the net cash inflow or outflow resulting from this investment opportunity. Year Cash inflow or retained: Expenditures: Total: $30,000 ($50,000 machine purchase) (14,000) ($34,000) 30,000 (14,000) 16,000 30,000 (14,000) 16,000 30,000 10,000 (machine salvage) (14,000) 26,000 Final Totals: $130,000 ($106,000) $24,000 B: Find the net present value of this investment using the format presented in Figure 8.2. NPV=cashflow/(1+i)t NPV=24,000/(1+0.11)- NPV=$15,809.54 C: Should the company purchase the blueprint machine? Explain. Yes the company should purchase the blueprint machine as they will have a net gain in present dollars of $15,809.54