A company wants to expand by buying another machine in order to produce more products. The machine will cost $20326 and installation costs are expected to be $3872. The machine is expected to generate incremental after-tax cash flows of $8107 in the first year, $11872 in the second year and $23356 in the final year. What is the net present value of the project if the required rate of return is expected to be 9.7%?

The correct answer is: 10750?