8 M. T. Glass, Inc. is considering the acquisition of a new piece of machinery to replace an old, outdated machine currently used in its business operations. The new machine would cost $180,000 and is expected to last 9 years. The new machine would require a repair of $25,000 in year seven and another repair costing $8,000 in year eight. In addition, purchasing this new machine would require an immediate investment of $30,000 in working capital which would be released for investment elsewhere at the end of the nine years. The machine is expected to have a $10,000 salvage value at the end of 9 years. The new machine is expected to generate annual net cash inflows of $70,000. M.T. Glass has a cost of capital of 16% and an income tax rate of 40%. Calculate the net present value (NPV) of the new machine. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). You will need to use the present value table factors posted in carmen to answer this question. To access these factors, click modules and then scroll to week 11. Click on the link labeled present value table factors. No credit will be awarded for this question using a means other than these table factors to answer this question. Present Value of a Lump-Sum Rate of interest per period in percent Periods 3% 5% 8% 9% 10% 12% 14% 15% 16% 20% 10 12 15 16 17 19 -23456789025678222 0.971 0.952 0.925 0.917 0.909 0.893 0.877 0.870 0.862 0.833 0.943 0.907 0.857 0.842 0.826 0.797 0.770 0.756 0.743 0.694 0.915 0.864 0.794 0.772 0.751 0.712 0.675 0.658 0.640 0.579 0.889 0.823 0.735 0.708 0.683 0.635 0.592 0.572 0.552 0.482 0.863 0.784 0.680 0.650 0.620 0.567 0.520 0.497 0.476 0.402 0.838 0.746 0.630 0.596 0.565 0.507 0.456 0.432 0.410 0.335 0.813 0.710 0.584 0.547 0.513 0.452 0.400 0.376 0.354 0.279 0.789 0.677 0.540 0.502 0.467 0.404 0.350 0.327 0.305 0.233 0.766 0.645 0.500 0.460 0.424 0.360 0.308 0.284 0.263 0.194 0.744 0.614 0.463 0.422 0.385 0.322 0.270 0.247 0.227 0.162 0.701 0.557 0.397 0.356 0.319 0.257 0.208 0.187 0.169 0.112 0.642 0.481 0.315 0.275 0.240 0.183 0.140 0.123 0.108 0.065 0.623 0.458 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.054 0.605 0.436 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.045 18 0.587 0.416 0.250 0.212 0.180 0.130 0.095 0.080 0.069 0.038 0.570 0.396 0.232 0.195 0.164 0.116 0.083 0.070 0.060 0.031 0.554 0.377 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.026 21 0.538 0.359 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.022 24 0.492 0.310 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.013 25 0.478 0.295 0.146 0.116 0.092 0.059 0.038 0.030 0.025 0.011 Present Value of an Annuity Rate of interest per period in percent Periods 3% 5% 8% 9% 10% 12% 14% 15% 16% 20% 123456 0.971 0.952 0.925 0.917 0.909 0.893 0.877 0.870 0.862 0.833 1.914 1.860 1.783 1.759 1.736 1.690 1.647 1.625 1.605 1.528 2.829 2.723 2.577 2.531 2.487 2.402 2.322 2.283 2.245 2.107 3.717 3.546 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.589 4.580 4.330 3.993 3.890 3.790 3.605 3.433 3.352 3.274 2.991 5.417 5.075 4.623 4.486 4.355 4.111 3.889 3.785 3.685 3.325 7 6.230 5.786 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.605 8 7.020 6.463 5.747 5.535 5.335 4.968 4.639 4.487 4.344 3.837 9 7.786 7.108 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.031 10 8.530 7.722 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.193 12 9.954 8.863 7.536 7.160 6.814 6.194 5.660 5.420 5.197 4.439 15 11.938 10.380 8.560 8.060 7.606 6.810 6.142 5.847 5.575 4.675 16 12.561 10.838 8.851 8.313 7.824 6.974 6.265 5.954 5.669 4.730 17 13.166 11.274 9.122 8.544 8.022 7.120 6.373 6.047 5.749 4.775 18 13.754 11.690 9.372 8.755 8.201 7.250 6.467 6.128 5.818 4.812 19 14.324 12.085 9.604 8.950 8.365 7.365 6.550 6.198 5.878 4.844 20 14.877 12.462 9.818 9.129 8.514 7.470 6.623 6.259 5.929 4.870 21 15.415 12.821 10.017 9.292 8.649 7.562 6.687 6.313 5.973 4.891 25 17.413 14.094 10.675 9.823 9.077 7.843 6.873 6.464 6.097 4.948