CamKes Ltd. company wants to buy a diamond-tipped automatic glass cutting machine worth 350,000 TL. It will be able to pay only 60% of the cost of the machine with its equity capital. For the remaining 40%, he has to take a loan from the bank with an interest of 12.5% and repay this loan in equal installments over five years. The economic life of the cutting machine is 10 years and its scrap value is estimated to be 75,000 TL. The operating and maintenance cost of the machine is 25,000 TL per year. If this machine is purchased, the company will generate an excess of 875,000 TL/year. The expectation of the firm from this investment is to earn 12.5% (So the interest rate for analysis is 12.5%).

What is the net present value of this investment? Do you think this investment is appropriate? Why