Question #3 DirectJet is considering whether to purchase a push truck produced by a local manufacturer or to import one. The cost of each machine is $50 million, with an expected five years of life and $3,000,000 salvage value for the local machine only. The cash inflows after taxation are as follows. Local Imported manufactured Year 1 $3,300,750 $11,124,750 Year 2 $5,256,750 $9,168,750 Year 3 $7,212,750 $7,212,750 Year 4 $9,168,750 $5,256,750 Year 5 $11,124,750 $3,300,750 If the depreciation per year is $10 million for the machine produced locally and $11 million for the imported one, calculate the following for both options if the discount factor is 10 percent. a. Payback period b. NPV C. IRR d. Profitability index What do you recommend to DirectJet's management