Question: please use the table in your answer 2. (10 points) (Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of

please use the table in your answer
please use the table in your answer 2. (10 points) (Ignore income

2. (10 points) (Ignore income taxes in this problem.) Axillar Beauty Products Corporation is considering the production of a new conditioning shampoo which will require the purchase of new mixing machinery. The machinery will cost $318,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $35,000 at the end of 10 years. The machinery will also need a $31,000 overhaul at the end of year 6. A $45,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $82,000 per year for each of the 10 years. Axillar's discount rate is 10%. Required: a. What is the net present value of this investment opportunity? b. Based on your answer to (a) above, should Axillar go ahead with the new conditioning shampoo? Description Cash Flow PV/PVA Factor PV of Cash Flow Purchase Machine. Working Capital Overhaul-yr. 6 Annual Cash Inflows Salvage Value Release of Working Capital Net Present Value

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