Central Motors is evaluating the replacement of its assembly line. The current line can be sold for $10,000. The new line costs $600,000 and requires an additional working capital investment of $100,000. It is expected to generate $200,000 in additional annual cash inflows for the next five years. The new line will have a salvage value of $50,000 at the end of the period. The company’s required rate of return is 10%, and setup costs are estimated at $15,000 in the first year.

Item	Value
Current Line Salvage	$10,000
New Line Cost	$600,000
Additional Working Capital	$100,000
Annual Cash Inflows	$200,000
Line Life	5 years
Salvage Value (New)	$50,000
Required Rate of Return	10%
Setup Cost	$15,000

Requirements:

1. Calculate the NPV of the investment.
2. Assess the feasibility of the investment.
3. Consider the salvage values.
4. Include additional working capital and setup costs.
5. Apply a discount rate of 10%.