An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery costs $$300$ today and is expected to last for $5$ years with no salvage value. Straight line depreciation will be used. Project inflows connected with the new machinery will begin in one year and are expected to be $$250$ each year for $5$ consecutive years and project outflows will also begin in one year and are expected to be $$112\mathrm{.}50$ each year for $5$ consecutive years. The corporate tax rate is $32\%$ and the required rate of return is $9\%.$ Calculate the project's net present value.

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?