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A company is considering the purchase of a machine that would cost $600,000 and would last for 6 years, at the end of which,
A company is considering the purchase of a machine that would cost $600,000 and would last for 6 years, at the end of which, the machine would have a salvage value of $50,000. The machine would reduce labor and other costs by $110,000 per year. Additional working capital of $4,000 would be needed immediately, all of which would be recovered at the end of 6 years. The company requires a minimum pretax return of 10% on all investment projects. (Ignore income taxes) The PVIF and PVIFA tables are provided below. The first column in the table "now" is time zero, the second column years 1-X is for the annuity, the third column is the last year of the project Required: Complete the table below and determine the net present value of the project. (Negative amount(s) should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount. Input your answers for "Discount Factor" to 3 decimal places.)
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