A company considers purchasing a high-capacity industrial 3-D printer.

A company considers purchasing a high-capacity industrial 3-D printer. The management anticipate that the new machine will lead to more economic use of raw materials, reduced labor costs, and increased sales. The firm estimates that the installation of the machine will save $40,000 on raw materials and $50,000 on reduced labor costs and will increase sales by $60,000 (all estimates are per year).The proposed machine costs $500,000 and it will have a five year anticipated life and will be depreciated using strainght line depreciation toward a zero salvage value. However, the company will be able to sell the machine in the after-market for 20% of its original costs at the end of year 5. The company requires a 11% rate of return from its investment and faces a 35% tax rate (the company is profitable).Calculate the NPV and IRR for the project. Should the company invest in this machine?  The manager raised some concerns about increased revenues. She projects that the increased revenues could be 10% to 50% less than what was projected. However, the savings from reduced labor costs and reduced raw material costs would remain same. She presented the probability distribution on the projected sales (see the table below). Estimate the NPV and IRR for each of these scenarios. Estimate the expected NPV, which is equal the weighted average sum of NPVs under each scenario weighted (multiplied) by the probability of a given scenario. Should the company invest in the machine under this revised analysis?At what increased sales volume, the company would have a break-even (NPV=0)?