Question 2 - 12 marks beyond a span of 5 years. JC has provided the following information: - Revenues from the new product are expected to be as follows: - Year 1$1,000,000 - Year 4-5 $1,300,000 - Expenses (cash outflows) for the production of the new product will be 70% of revenues - The machine is expected to have a salvage value of $250,000 at the end of the project. - The machine will be in a CCA class where the rate is 20%. Income taxes are 25%, and JC requires a 12% rate of return. Required 1. Considering the effects of income tax and using Net Present Value calculations, should the company purchase the new machine