1. Stanton Inc. is considering the purchase of a new machine that will reduce before-tax cash operating costs by $5,000 annually and increase sales $10,000 annually. Stanton will use the MACRS method to depreciate the machine and it expects to sell the machine at the end of 5th year for $15,000 before taxes. Stanton's marginal tax rate is 21 percent, and it uses a 10 percent cost of capital to evaluate projects of this type. The machine has a MACRS class life of 5 years and the applicable depreciation rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for years 1 through 6 respectively. If the machine's cost is $60,000, what is the project's NPV? (5 points)