Bingham, Inc., is considering the purchase of a machine that would cost $700,000 and would last for 12 years, at the end of which, the machine would have a salvage value of $15,000. The machine would reduce labor and other costs by $100,000 per year, while adding $58,300 in depreciation expense. Additional working capital of $25,000 would be needed immediately, all of which would be recovered at the end of 12 years. The company requires a minimum pretax return of 11% on all investment projects. Required: Determine the net present value of the project. Show your work! TABLE 3 Present Value of 1 6% 10% 12% 89286 11% .90090 .81162 73119 .65873 .59345 .79719 (8) Periods 4% 5% 1 .96154 .95238 2 .92456 .90703 3 88900 .86384 .85480 82270 5 .82193 .78353 6 .79031 .74622 7 .75992 71068 8 .73069 67684 .70259 .64461 10 .67556 ,61391 11 64958 58468 12 .62460 ..55684 13 60057 53032 57748 50507 15 55526 .48102 -53391 _45811 151337 43630 49363 41552 47464 39573 45639 37689 85655 STORE @va .94340 .89000 .83962 .79209 -74726 .70496 ,66506 .62741 .59190 .55839 .52679 ,49697 .46884 .44230 41727 8% .92593 .85734 .79383 73503 .68058 .63017 .58349 .54027 50025 ,46319 .42888 .39711 -36770 .34046 131524 .29189 .27027 25025 -23171 21455 9% 91743 .84168 77218 .70843 .64993 59627 .54703 50187 46043 42241 1.38753 35554 32618 29925 127454 .90909 .82645 .75132 68301 .62092 56447 51316 46651 42410 .38554 .35049 31863 .28966 26333 23939 21763 19785 .17986 .16351 14864 53464 .48166 43393 39092 .35218 31728 28584 .25751 23199 .20900 -18829 16963 . 15282 .13768 .12403 71178 .63552 56743 50663 45235 40388 36061 32197 28748 25668 22917 20462 18270 16312 14564 .13004 11611 10367 15% .86957 075614 .65752 157175 49718 .43233 37594 132690 28426 24719 21494 .18691 .16253 14133 .12289 .10687 .09293 .39365 37136 35034 33051 .31180 25187 23107 21199 .19449 17843 ,08081 .07027 06110 35% -93238 190703 586384 15% 8% 92590 185734 79383 .73503 68058 10% 90090 81162 20% :90909 .82645 75132 -68301 62092 86957 75614 82270 -73119 .65752 -78253 SALSA 74622 171068 67684 .64461 5% 91743 84168 218 0843 64993 159627 54703 50187 46043 42241 165873 50245 Sans 153464 12% 89286 79919 71178 63552 56743 50663 45235 rated 40388 36061 56447 Bried 1 96154 192456 3 88900 4 85.4.90 8103 6 179031 -75992 8 73069 9 .70259 10 .67556 11 .64958 12 -62460 13 .60057 14 57748 15 55526 16 -53391 17 51337 18 .49363 19 47464 20 .45639 -03017 58349 54027 50025 48166 .61391 43393 39092 235218 46319 51316 46651 42410 38884 35049 .31863 28966 194340 89000 R396 99209 74726 -70496 -66506 62741 59190 55839 52679 49697 46884 44230 41727 39365 37136 35034 -33051 .31180 32197 58468 36753 55684 53032 SOS07 48102 45811 43630 .41552 39573 37689 26333 42888 39711 36770 34046 31524 .29189 27027 25025 .23171 .21455 35554 32618 29925 27454 25187 23107 -21199 .19449 .17843 54175 49718 43233 37594 32690 28426 24719 21494 18691 -16253 .14133 .12289 .10687 .09293 08081 107027 06110 31728 28584 25751 .23199 20900 .18829 .16963 .15282 13768 .12403 23939 21763 19785 .17986 16351 -14864 28748 25668 22917 20462 .18270 -16312 .14564 -13004 .11611 10367 TABLE4 Present Value of an Annuity of 1 Periods 4% 5% 6% 1 .96154 95238 .94340 2 1.88609 1.85941 1.83339 3 2.77509 2.72325 2.67301 4 3.62990 3.54595 3.46511 5 4.45182 4.32948 4.21236 6 5.24214 5.07569 4.91732 7 6.00205 5.78637 5.58238 8 6.73274 6.46321 6.20979 9 7.43533 7.10782 6.80169 10 8.11090 7.72173 7.36009 11 8.76048 8.30641 7.88687 12. 9.38507 8.86325 8.38384 13 9.98565 9.39357 8.85268 14 10.56312 9.89864 9.29498 15 11.11839 10.37966 9.71225 16 11.65230 10.83777 10.10590 17 12.16567 11.27407 10.47726 18 12.65930 11.68959 10.82760 19 13.13394 12.08532 11.15812 20 13.59033 12.46221 11.46992 8% .92593 1.78326 2.57710 3.31213 3.99271 4.62288 5.20637 5.74664 6.24689 6.71008 7.13896 7.53608 7.90378 8.24424 8.55948 8.85137 9.12164 9.37189 9.60360 9.81815 9% 191743 1.75911 2.53130 3.23972 3.88965 4.48592 5.03295 5.53482 5.99525 6.41766 6.80519 7.16073 7.48690 7.78615 8.06069 8.31256 8.54363 8.75563 8.95012 9.12855 10% .90909 1.73554 2.48685 3.16986 3.79079 4.35526 4.86842 5.33493 5.75902 6.14457 6.49506 6.81369 7.10336 7.36669 7.60608 7.82371 8.02155 8.20141 8.36492 8.51356 11% 12% 15% 9009089286 86957 1.71252 1.69005 1.62571 2.44371 2.40183 2.28323 3.10245 3.03735 2.85498 3.69590 3.60478 3.35216 4.23054 4.11141 3.78448 4.71220 4.56376 4.16042 5.14612 4.96764 4.48732 5.53705 5.32825 4.77158 5.88923 5.65022 5.01877 6.20652 5.93770 5.23371 6.49236 6.19437 5.42062 6.74987 6.42355 5.58315 6.62817 5.72448 7.19087 6.81086 5.84737 7.37916 6.97399 5.95424 7.54879 7.11963 6,04716 7.70162 7.24967 6.12797 7.83929 7.36578 6.19823 7.96333 7.46944 6.25933 6.98187