Question 2 (7 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: o 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 of $10,000 in the first year of operations are expected to rise by 10 percent each year. 0 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 appropriate CCA rate is 30 percent. Should the company purchase the new machine? Follow the \"template\" (the \"nominal dollar approach\" on page 4 of the class notes) and then compute the NPV. [If you can, use ExceiJ