BUBBA has provided you with the following information:

Full price of machine is $140,000.

The increase in net working capital is $2,000.

BUBBA has a 25% marginal tax rate.

The machine falls into the MACRS 3-year class (33%, 45%, 15%, and 7% depreciation rates).

BUBBA will use the machine for 4 years and then plans to sell it for $25,000 at the end of year 4.

The machine is expected to provide incremental revenue of $60,000 per year and incremental cost of $15,000 per year for the life of the machine. There will be no transportation costs related to the machine.

BUBBA has a WACC of 10%.

How would you calculate the NPV (Net Present Value)? Also, would you recommend the purcase of the new machine?

This is all the information that was provided

Find the NPV