PRINT your name, as it appears on Compass, on all exam pages. 5. (15 pts) A retooling/maintenance procedure can be done to extend the life of an extrusion machine for five years. If this is not done, a new machine must be purchased for $300,000 now. If a new machine is purchased in five years, the cost will be $350,000. If money can be invested today at 6% APR compounded monthly, what is the maximum acceptable cost of the retooling to get 5 more years life out of the machine? 5.1. (3 pts) Show your cash flow diagram for buying the new machine now. 5.2. (5 pts) Show your cash flow diagram for doing the repair now and investing to buy the new machine in five years. 5.3. (7 pts) What is the maximum acceptable cost of the repair to make it a feasible option? PRINT your name, as it appears on Compass, on all exam pages. 5. (15 pts) A retooling/maintenance procedure can be done to extend the life of an extrusion machine for five years. If this is not done, a new machine must be purchased for $300,000 now. If a new machine is purchased in five years, the cost will be $350,000. If money can be invested today at 6% APR compounded monthly, what is the maximum acceptable cost of the retooling to get 5 more years life out of the machine? 5.1. (3 pts) Show your cash flow diagram for buying the new machine now. 5.2. (5 pts) Show your cash flow diagram for doing the repair now and investing to buy the new machine in five years. 5.3. (7 pts) What is the maximum acceptable cost of the repair to make it a feasible option