Alto Clinic plans to purchase a new centrifuge machine for its Ontario facility. The machine costs $174,000 and is expected to have a useful life of nine years, with a terminal disposal value of $20,500. Savings in cash operating costs are expected to be $35,000 per year. However, additional working capital is needed to keep the machine running efficiently. The working capital must continually be replaced, so an investment of $14,000 needs to be maintained at all times, but this investment is fully recoverable (will be "cashed in") at the end of the useful life. Alto Clinic's required rate of return is 10%. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts.

Requirement 1. Calculate net present value. (Round amounts to the nearest whole dollar.)

	PV Factor at i=10%, n=9		Net Cash Inflow		Total Present Value
Net present value:
Present value of annuity of equal annual net cash inflows				per year =
Present value of terminal disposal value				=
Present value of working capital				=
Net initial investment
Net present value