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For both questions, use the PV table attached. 1.) XYZ Company is… For both questions, use the PV table attached. Image transcription textPresent Value of a Lump-Sum Rate ofinterest per period in percent Periods3% 5% 8% 9% 10% 12% 1… Show more… Show moreImage transcription textPresent Value of an Annuity Rate ofinterest per period in percent Periods3% 5% 8% 9% 10% 12% 1… Show more… Show more 1.) XYZ Company is considering the purchase of a new piece ofequipment and has gathered the following information aboutthe purchase:Initial investment ……….. ?Annual cost savings ………. $38,000Salvage value in 8 years ….. 20% of initial investmentRepair in 5 years ………… $16,000Working capital needed now … $31,000Cost of capital ………….. 14%Life of project ………….. 8 yearsThe working capital needed now will be released forinvestment elsewhere at the end of the eight years.The net present value of the new equipment is -$26,656.———————————————————————-2.) M.T. Glass, Inc. is considering the acquisition of a new pieceof heavy machinery to replace an old, outdated machine that iscurrently used in its business operations. The new machine willcost $180,000 and is expected to last 9 years. The new machinewould require a repair of $25,000 in year seven and anotherrepair costing $8,000 in year eight. In addition, purchasingthis machine would require an immediate investment of $30,000in working capital. The working capital would be released forinvestment elsewhere at the end of the 9 years. The new machineis expected to have a $10,000 salvage value at the end of nineyears. The old, outdated machine costs $160,000 per year tomaintain and run. The new machine is only expected to cost$90,000 per year to maintain and run. M.T. Glass has a costof capital of 16% and an income tax rate of 40%.Calculate the net present value (NPV) of the new machine. Accounting Business Managerial Accounting ACCTMIS 2300

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