ABC Company is considering the acquisition of a new piece of equipment to replace an old, outdated machine currently used in its business operations. The new equipment would cost $135,000 and is expected to last 9 years. The new equipment would require a repair of $25,000 in year four and another repair costing $80,000 in year eight. Purchasing this new equipment would require an immediate investment of $30,000 in working capital which would be released for investment elsewhere at the end of the 9 years. The new equipment is expected to have a $10,000 salvage value at the end of nine years. The new equipment is expected to generate a cost savings of $60,000 per year. ABC Company has a cost of capital of 16% and an income tax rate of 40%. Calculate the net present value (NPV) of the new equipment. 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

Present Value of a Lump-Sum Periods 3% 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7014 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.5375 0.4920 0.4776 5% 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5568 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.3589 0.3101 0.2953 Rate of interest per period in percent 8% 9% 10% 12% 14% 15% 16% 0.9259 0.9174 0.9091 0.8929 0.8772 0.8696 0.8621 0.8573 0.8417 0.8265 0.7972 0.7695 0.7561 0.7432 0.7938 0.7722 0.7513 0.7118 0.6750 0.6575 0.7350 0.7084 0.6830 0.6355 0.5921 0.5718 0.5520 0.6806 0.6499 0.6209 0.5674 0.5194 0.4972 0.4761 0.6312 0.5963 0.56450.50660.4556 0.4323 0.4104 0.5835 0.5470 0.5132 0.4523 0.3996 0.37590.3538 0.5403 0.5019 0.4665 0.4039 0.3506 0.3269 0.3050 0.5003 0.4604 0.3075 0.2843 0.2630 0.4630 0.4224 0.3855 0.3220 0.2697 0.2472 0.2267 0.3971 0.3555 0.3186 0.2567 0.2076 0.1869 0.1685 0.3152 0.2745 0.2394 0.1827 0.1401 0.1229 0.1079 0.2919 0.2519 0.2176 0.1631 0.1229 0.1069 0.0930 0.27030.2311 0.1978 0.1456 0.1078 0.0929 0.0802 0.2503 0.2120 0.1799 0.1300 0.0946 0.0808 0.0691 0.2317 0.1945 0.1635 0.1161 0.08290.07030.0596 0.2146 0.1784 0.1486 0.1037 0.0728 0.0611 0.0514 0.1987 0.1637 0.1351 0.0926 0.0638 0.0531 0.0443 0.1577 0.1264 0.1015 0.0659 0.0431 0.0349 0.0284 0.1460 0.1160 0.0923 0.0588 0.0378 0.0304 0.0245 20% 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1122 0.0649 0.0541 0.0471 0.0376 0.0313 0.0261 0.0217 0.0126 0.0105 12 15 16 20 21 25 Present Value of an Annuity Periods 3% 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 108.5302 12 9.9540 15 11.9379 16 | 12.5611 17 13.1661 18 | 13.7535 19 | 14.3238 20 14.8775 21 15.4150 25 17.4132 5% 0.9524 1.8594 2.7233 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.8633 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 12.8212 14.0939 Rate of interest per period in percent 8% 9% 10% 12% 14% 15% 16% 20% 0.9259 0.9174 0.9091 0.8929 0.87720.8696 0.86210.8333 1.7833 1.7591 1.7355 1.6901 1.6467 1.5278 2.5771 2.5313 2.4869 2.4018 2.3216 2.2832 2.2459 2.1065 3.3121 3.2397 3.1699 3.0374 2.9137 2.8550 2.7982 2.5887 3.9927 3.8897 3.7908 3.6048 3.4331 3.3522 3.2743 2.9906 4.62294.48594.3553 4.1114 3.8887 3.7845 3.6847 3.3255 5.2064 5.0330 4.8684 4.5638 4.2883 4.1604 4.0386 3.6046 5.7466 5.5348 5.3349 4.9676 4.6389 4.48734.3436 3.8372 6.2469 5.9953 5.7590 5.3283 4.9464 4.7716 4.6065 4.0310 6.7100 6.4177 6.1446 5.6502 5.2161 5.0188 4.8332 4.1925 7.5361 7.1607 6.8137 6.1944 5.6603 5.4206 5.1971 4.4392 8.5595 8.0607 7.6061 6.8109 6.1422 5.8474 5.5755 4.6755 8.8514 8.3126 7.8237 6.9740 6.2651 5.9542 5.6685 4.7296 9.1216 8.5436 8.0215 7.1196 6.37296.0472 5.7487 4.7746 9.3719 8.7556 8.2014 7.2497 6.4674 6.1280 5.8178 4.8122 9.6036 8.9501 8.36497.3658 6.5504 6.1982 5.8775 4.8435 9.8182 9.1286 8.51357.4694 6.6231 6.25935.9288 4.8696 10.0168 9.2922 8.6487 7.5620 6.68706.3125 5.9731 4.8913 10.6748 9.8226 9.0770 7.84316.8729 6.4641 6.0971 4.9476