(NPV and cash flows) A company is considering buying a new machine for one of its factories. The cost of the machine is $60,000, and its expected life span is 5 years. The machine will save the cost of a worker estimated at

$22,500 annually. The net book value (salvage value) of the machine at the end of year 5 is $10,000. However, the company estimates that the market value will be only $5,000. Calculate the NPV of purchasing the machine if the discount rate is 12% and the tax rate is 30%. Assume straight-line depreciation over the 5-year life of the machine.