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Can you help me with this question and answer step by step Company X...

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Accounting

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Can you help me with this question and answer step by step

Company X manufactures birdhouses and have painted the houses partly manually. Company's growth prospects seem promising and the company is considering on investing to a new fully automatic paintmachine. \begin{tabular}{|l|r|r|} \hline & Annual costs & \\ \hline Now: & Painter's salary and expenses & 25000 \\ \hline & Maintainance & 5000 \\ & Old machine in balance sheet & 15000 \\ & Excpected value if the machine is sold & 12000 \\ & & \\ \hline & & 67500 \\ \hline New machine: & Price of the machine & 12000 \\ & Installation & 4000 \\ & Training & 5500 \\ & Upkeep (annually) & 750 \\ & Insurance (annually) & 0 \\ \hline & Disposal value & \\ \hline \end{tabular} Calculate the profitability of the investment by using IRR, NPV and PP The company will use discount factor of 12% Life cycle of the machine is 5 years

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