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self-serve checkout machine would reduce part-time student wages by $41,000 per year. The machine would...

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Accounting

self-serve checkout machine would reduce part-time student wages by $41,000 per year. The machine would cost $360,00 and has a 10-year useful life. Total costs of operating the checkout machine would be $6,200 per year, including maintenance. Major maintenance would be needed on the machine in five years at a total cost of $11,200. The salvage value of the checkout machine in 10 years would be $46,000.
The CCA rate is 25%. Management requires a 10% after-tax return on all equipment purchases. The company's tax rate is 30%.
Required:
Determine the before-tax net annual cost savings that the new checkout machine will provide.
Answer is complete and correct.
Net annual cost savings
$,34,800
2-a. Using the data from (1) above and other data from the exercise, compute the checkout machine's net present value. (Hint. Use Microsoft Excel to calculate the discount factor(s).)(Do not round intermediate calculations and round your final answer to the nearest dollar amount. Negative value should be indicated with minus sign.)
Answer is complete but not entirely correct.
Net present value
$,201,298
2-b. Would you recommend that the machine be purchased?
Yes
No
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