2. Compute the NC equipment's ARR. Round the percentage to one decimal place. Assume straight-line depreciation. fill in the blank 2 %

3. Compute the investment's NPV, assuming a required rate of return of 10%. Round present value calculations and your final answer to the nearest dollar.

Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $384,000. The NC equipment will last 5 years with no expected salvage value. The expected after-tax cash flows associated with the project follow:

Year		Cash Revenues		Cash Expenses
1		$510,000		$360,000
2		510,000		360,000
3		510,000		360,000
4		510,000		360,000
5		510,000		360,000