(Solved): Your friend in mechanical engineering has invented a money machine. The main drawback of the machin ...

Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture \( \$ 300 \). However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost \( \$ 3,275 \) to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is \( 8.5 \% \) per year, what should your friend do? What is your advice if the machine takes one year to build? The NPV of the machine is \( \$ \) (Round to the nearest dollar.)