5. A company is considering to add a new product line. A machine has to be purchased at a cost $300,000 (including freight and installation). It has an economic life of 4 years and will be depreciated by MACRS 3-year depreciation (33\%, 45\%, 15\%, 7\%). It is expected to have a salvage value of $40,000 after 4 years of use. Company's inventories would have to be increased by $50,000 to handle the new line, and its accounts payable would rise by $15,000. The new line would generate $120,000 in incremental net revenues (before taxes and excluding depreciation) in each of the next 4 years. The company's tax rate is 40% and an appropriate discount rate for the new line is 12%. Find the NPV of this product line