Becket Industries is considering a proposal for the acquisition of a new piece of highly automated equipment that would replace an existing machine. The new equipment will cost $425,000 and have a 10-year useful life. If accepted, the proposal would also require the immediate infusion of $20,000 of additional working capital. The existing machine can be sold for $35,000. The new equipment should provide operational cash savings (mainly reduced labor costs) of $90,000 each year over its 10-year life. However, additional cash expenditures of $4,000 per year will be required for ongoing special programming. This $4,000 programming cost is independent of, and not included in the operational cash savings. The company also expects that a capital infusion of $5,000 will be required in the second, fourth, sixth and eighth years of the project for technical software and controls updates. At the end of 10 years, the proposed equipment can be sold for $60,000 and $25,000 of working capital will be recovered. The company desires a 16% return on projects of this nature. What is the net present value of this proposal at the companys desired rate of return? Required: Prepare an excel spreadsheet that analyzes this proposal.