Question 2 (3 marks) The Triple-A Manufacturing Co. is considering the purchase of a machine. The machine will cost a total of $50,000 and has an expected useful life of 6 years. The company's cost of capital is 12% and the inflation rate in Canada is expected to be 6% annually for the foreseeable future. The following projections are made: The machine will produce 8,000 units annually. In the first year, each unit will sell for $5.00. Subsequent increases in the selling price are expected to be 5 percent per year. Labour costs will be $10,000 in the first year of operations are expected to rise by 10 percent each year. Materials will cost $12,000 in the first year and will rise by 6 percent annually. Other expenses total $1,500 in the first year and will rise by 2 percent a year. Corporate taxes are 40 percent. The CCA rate is 30 percent. Should the company purchase the new machine? Follow the \"template\" (example on page 4 of the inflation handout)- i.e., the \"long way\"- and then compute the NPV. If you use excel, just attach the printout as the last page of the assignment. If you do it manually, attach the next page (page 5)