10. A new machine that will lead tø savings in labour costs of $16,000 per year can be pur- chased for $72,000. However, it will cost $1500 per year for the first four years and $2500 per year for the...

Extracted text: 10. A new machine that will lead tø savings in labour costs of $16,000 per year can be pur- chased for $72,000. However, it will cost $1500 per year for the first four years and $2500 per year for the next four years to service and maintain it. In addition, its annual electrical power consumption will cost $1000. After a service life of eight years, the salvage value of the machine is expected to be$5000. Should the machine be acquired if the company requires a minimum return on investment of 7%?