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Admiralty Corporation is analyzing a proposal to switch its factory over to a lights-out operation. To do so, it must acquire a fully automated machine. The machine will be able to produce an entire product line in a single operation. Projected annual net cash inflows from the machine are $180,000, and projected net income is $120,000. Why is the projected net income lower than projected net income is $120,000. Why is the projected net income lower than the projected net cash inflows? Identify possible causes for the $60,000 difference. Sandcastles, Inc.'s management has recently been looking at a proposal to purchase a new brick molding machine. With the new machine. the company would not have to buy bricks. The estimated useful life of the machine is15 years, and the purchase price, including all setup charges, is $400,000. The residual value is estimated to be $40,000. The net addition to the company's cash inflow as a result of the savings from making the bricks is estimated to be $70,000 a year. Sandcastle's management has decided on a minimum rate of return of 14 percent. Using the net present value method to evaluate this capital investment, determine whether the company should purchase the machine. Support your