ABC Company is considering the acquisition of a new piece of equipment to replace an old, outdated machine currently used in its business operations.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 posted

Present Value of a Lump-Sum Periods 3% 5% 0.9709 0.9524 0.9426 0.9070 0.9151 0.8638 0.8885 0.8227 | 0.8626 0.7835 6 0.8375 0.7462 7 0.8131 0.7107 8 0.7894 0.6768 9 0.7664 0.6446 10 0.7441 0.6139 12 0.7014 0.5568 15 0.64190.4810 16 | 0.6232 0.4581 0.6050 0.4363 0.5874 0.4155 0.5703 0.3957 0.5537 0.3769 0.5375 0.3589 0.4920 0.3101 25 0.4776 0.2953 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.6312 0.5835 0.5403 0.5003 0.4630 0.3971 0.3152 0.2919 0.2703 0.2503 0.2317 0.2146 0.1987 0.1577 0.1460 Rate of interest per period in percent 9% 10% 12% 14% 0.9174 0.9091 0.8929 0.8772 0.8417 0.8265 0.7972 0.7695 0.7722 0.7513 0.7118 0.6750 0.7084 0.6830 0.6355 0.5921 0.6499 0.6209 0.5674 0.5194 0.5963 0.56450.5066 0.4556 0.5470 0.5132 0.4523 0.3996 0.5019 0.4665 0.40390.3506 0.4604 0.4240 0.3606 0.3075 0.4224 0.3855 0.3220 0.2697 0.3555 0.3186 0.2567 0.2076 0.2745 0.2394 0.1827 0.1401 0.2519 0.2176 0.1631 0.1229 0.2311 0.1978 0.1456 0.1078 0.2120 0.1799 0.1300 0.0946 0.1945 0.1635 0.1161 0.0829 0.1784 0.1486 0.1037 0.0728 0.1637 0.1351 0.0926 0.0638 0.1264 0.1015 0.0659 0.0431 0.1160 0.0923 0.0588 0.0378 15% 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.1869 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 0.0531 0.0349 0.0304 16% 0.8621 0.7432 0.6407 0.5520 0.4761 0.4104 0.3538 0.3050 0.2630 0.2267 0.1685 0.1079 0.0930 0.0802 0.0691 0.0596 0.0514 0.0443 0.0284 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 Present Value of an Annuity Rate of interest per period in percent Periods 3% 5% 8% 9% 10% 12% 14% 15% 16% 0.9709 0.9524 0.9259 0.9174 0.9091 0.8929 0.8772 0.8696 0.8621 1.9135 1.8594 1.7833 1.7591 1.73551.6901 1.6467 1.6257 1.6052 2.8286 2.7233 2.5771 2.5313 2.4869 2.4018 2.3216 2.2832 2.2459 3.7171 3.54603.3121 3.2397 3.16993.0374 2.9137 2.8550 2.7982 4.5797 4.3295 3.9927 3.8897 3.7908 3.6048 3.4331 3.3522 3.2743 5.41725.0757 4.62294.48594.3553 4.1114 3.8887 3.7845 3.6847 6.2303 5.7864 5.2064 5.0330 4.8684 4.5638 4.2883 4.1604 4.0386 7.0197 6.4632 5.7466 5.5348 5.33494.9676 4.6389 4.4873 4.3436 7.7861 7.1078 6.2469 5.9953 5.7590 5.3283 4.9464 4.7716 4.6065 10 8.5302 7.7217 6.7100 6.4177 6.1446 5.6502 5.21615.0188 4.8332 12 9.9540 8.8633 7.5361 7.1607 6.8137 6.1944 5.6603 5.4206 5.1971 15 | 11.9379 10.3797 8.5595 8.0607 7.6061 6.8109 6.1422 5.8474 5.5755 16 12.5611 10.8378 8.8514 8.3126 7.8237 6.9740 6.2651 5.9542 5.6685 13.1661 11.2741 9.1216 8.5436 8.0215 7.1196 6.37296.04725.7487 13.7535 11.6896 9.3719 8.7556 8.2014 7.2497 6.4674 6.1280 5.8178 14.3238 12.0853 9.6036 8.9501 8.36497.3658 6.5504 6.1982 5.8775 20 14.8775 12.4622 9.81829.1286 8.5135 7.4694 6.6231 6.2593 5.9288 21 | 15.4150 12.8212 10.0168 9.2922 8.6487 7.5620 6.68706.3125 5.9731 25 17.4132 14.0939 10.6748 9.8226 9.0770 7.8431 6.8729 6.4641 6.0971 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.4392 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9476