Apothic Inc. is nestled in the beautiful Kelowna British Columbia. It is considering the purchase of ten hydraulic ice win press machines for a total price of $325,000. The firm's old press machines have a book value of $85,000, but can only be sold for $60,000.

The new hydraulic press machines are estimated to attract additional customers and will generate annual revenue of $62,000 for the first 6 years and decreasing to 58,000 for the next 4 years. Operating expenses will be 20% of the revenue. Working capital of 28,000 will have to be injected at the start of operation to support the increased sales.

At the end of year 6, a capital upgrade will cost $15,000. At the end of year 10, the press machines can be salvaged for $42,000. The PV CCA came to be 66,275. Apothic Inc. is in the 40% tax bracket and has 12% cost of capital.

Using the NPV approach, determine if Apothic Inc, should purchase the new machines