$18$

$1$ point

A company has a machine which will continue to function for the next five years, but gradually become less productive. Free cash flows for the existing machine are forecasted to be $$81,198$ in year $1,$$$59,616$ in year $2,$$$37,675$ in year $3,$$$10,872$ in year $4$ and $$7,84$ in year $5.$ A salesman is trying to convince a company to replace this machine with a new model. The replacement machine will require a net investment of $$156,892$ and is expected to generate free cash flow of $$87,651$ per year for the next $5$ years. The company requires $13\%$ return on capital investments of this sort and desires a $36-$ month pay back period.

What is the net present value of this proposal?

Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $$90\mathrm{.}1234,$ enter $90\mathrm{.}1234.$ If you answer is less than zero, enter a negative value, like this: $-90\mathrm{.}1234$

Type your answer.s$.$