accouting 5, information is availableThe KnowWho Corp is considering an investment in a new machine. The followingCost of MachineLifeRequired rate of returnAnnual profit years 1-45-7Repairs in year 6Year 98-10$15,000$8,000$20,000$6,000$5,000Salvage Value$10,00010% rebate from manufacturer at beginning of year 3.$80000 (540,000 down and $20,000 of the end of year 9 & 10$90,000$10,00010 year$4,000'60008%if they purchase this machine, they will not need the old machine.Old MochineCostBook valueSell forLossRequired:1) Using the Net Present Value Method, should they purchase the new machine?SHOW ALL WORK2) Same question but use the Payback Method.

1. Net present value is calculated by deducting initial investment from present value of cash…

5. Life Required rate of return Annual profit years 14 5-7 Repairs in year 6 Year 9 8-10 Sell for Loss S8000 (540,000 down and $20,000 at the end of year 9&10 $90,000 $10,000 10 year $4,000 8% Salvage Value 10% rebate from manufacturer at beginning of year 3. $15,000 $8,000 $20,000 $6,000 $5,000 If they purchase this machine, they will not need the old machine. Old Mochine Cost Book value $10,000 Required: Using the Net Present Value Method, should they purchase the new machine? SHOW ALL WORK Same question but use the Payback Method.