TEST NO.3 PAGE 15 7. (5 pts) A widget machine will cost $480,000. The anticipated increase in revenue will be $140,000/year for 5 years. Annual expenses will be $30,000/year for 5-years. The depreciable life is estimated to be 5-years and the salvage value will equal $35,000. Additional inventory necessary to run the machine will be $26.000. Initial training expenses are $20,000. Tax rate equals 40%. Find the NPV@ 10%. Find the IRR. Find the discounted payback and convert this into a percentage