13 pts D Question 10 Summers, Inc., is considering the purchase of a machine that would cost $575,000 and would last for 15 years, at the end of which, the machine would have a salvage value of $2,500. The machine would reduce labor and other costs by $75,000 per year, while adding $38,300 in depreciation expense. Additional working capital of $10,000 would be needed immediately, all of which would be recovered at the end of 15 years. The company requires a minimum pretax return of 8% on all investment projects. Required: Determine the net present value of the project. Show your work! TABLE 3 Present Value of 1 (n) 15% Periods 4% 5% 6% 9% 10% 11% 12% .96154 .95238 .94340 .92593 91743 90909 .90090 89286 8695 .92456 90703 .89000 85734 .84168 .82645 .81162 .79719 .75614 88900 .86384 183962 .79383 .77218 .75132 .73119 .71178 .65752 85480 82270 .79209 .73503 .70843 68301 .65873 .63552 57175 82193 78353 .74726 68058 .64993 62092 .59345 56743 49718 .79031 .7462 70496 63017 5962 56447 53464 50663 .43233 75992 71068 .66506 58349 $4703 51316 48166 45235 37594 73069 .67684 62741 54027 50187 46651 43393 40388 32690 .70259 6446 59190 50025 46043 42410 .39092 36061 .28426 67556 .61391 55839 46319 .42241 .38554 35218 32197 .24719 .6495 58468 52679 42888 38753 35049 31728 28748 .21494 .62460 5568 49697 39711 .35554 31863 28584 25668 .18691 60057 53032 46884 36770 32618 28966 25751 22917 .16253 57748 50507 44230 34046 29925 26333 .23199 20462 .14133 53526 48102 41727 31524 .27454 23939 20900 18270 .12289 16 53391 45811 39365 29189 25187 21763 .18829 17 .16312 10687 51337 43630 37136 27027 .23107 18 .19785 .16963 .14564 49363 09293 41552 35034 .25025 19 .21199 17986 .15282 47464 39573 .13004 .08081 33051 20 .23171 .19449 16351 45639 37689 13768 ,11611 31180 21455 07027 -17843 .14864 .12403 .10367 .06110 TABLE 4 Present Value of an Annuity of 1 (n)