Apothic Inc. is nestled in the beautiful wine country of British Columbia. It is considering the purchase of ten hydraulic ice win press machines for a total price of $100,000. The firm's old press machines have a book value of $85,000, but can only be sold for $62,000.

The new hydraulic press machines are estimmated 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. Annual operating expenses will be 20% of the revenue. Working capital of 30,000 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 $15,000. Apothic Inc. is in the 40% tax bracket and has 12% cost of capital. The capital cost allowance of the machines is 30%.

What is the present value of the purchase price? What is the present value of the sale price of the old machine? What is the present value of the working capital investment? What is the net cashflow for the first five years? What is net after tax cashflow for year 6? What is net after tax cashflow for year 7 to 9? What is the future value of working capital? What is the future value of the new equipment salvage? What is the net cashflow for year 10? What is the NPV?