Cawton Inc. purchased a machine that will be used to produce nylon belt pouches: Discount rate: 18% Cost of machine: $75,000 Life: 5 Years Salvage Value: $2,000 Maintenance Required: $10,000 at the end of the third year Production and sales: 26,000 pouches per year Sales price per pouch $2.75 Direct material $ 0.70 Variable labor and overhead cost $ 1.05                                              

What is the Net Present Value (NPV)? •