=+18-34 KK NPV and AARR, goal-congruence issues OBJECTIVES 3, 6, 7 Joshua Roberts, a manager of the Ceramic Tiles Division for Benson’s Flooring, has the opportunity to expand the division by investing in additional machinery costing $275000. He would depreciate the equipment using the straight-line method and expects it to have no residual value. It has a useful life of five years. The company mandates a required rate of return of 10% on investments. Joshua estimates annual net cash inflows for this investment of $85000 before taxes, and an investment in working capital of $30000. The tax rate is 30%.

Required 1 Calculate the net present value of this investment.