An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $$350$ today and is expected to last for $5$ years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $$200$ each year for $5$ consecutive years and project outflows will also begin in one year and are expected to be $$90\mathrm{.}00$ each year for $5$ consecutive years. The corporate tax rate is $30\%$ and the required rate of return is $7\%.$ Calculate the project's net present value.

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Place your answer in dollars and cents. Do not include a dollar sign or comma in your answer. Work your analysis with at least four decimal places of accuracy.

YOU ARE NOT FINISHED. NOW GO ON TO THE SECOND PART!

PART $2.$ Given your estimate of the NPV$,$ should you accept or reject the project?