ABC is debating the purchase of a new digital printer. The printer they acquired 3 years ago for $2,800,000 is worth $1,800,000 today and will have a salvage value of $540,000 after 6 more years. The printer generates revenues of $850,000 per year. The costs of operating the printer are $430,000 per year. The company currently has $80,000 invested in operating net working capital. The investment in operating net working capital will remain at this level for the remaining 6 years of the project.

The new printer will cost $3,430,000. It will cost $220,000 to install the new printer. The new printer will generate revenues of $1,380,000 per year. In addition, the costs of operating the new printer will be $560,000 per year. The company will have to increase its investment in operating net working capital to $175,000 at time zero. At the end of 6 years, the new machine will have a salvage value of $720,000.

The companys corporate tax rate is 32%, the CCA rate is 20% and the required rate of return is 12%. Assume the asset class remains open. Using net present value (NPV) calculation, determine if the company should purchase the new printer.

Please solve using excel and show formulas. Thank you.