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Champ Farm Ltd. is considering the purchase of a combine harvester to harvest and sell wheat on one of its many properties. The combine harvester

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Champ Farm Ltd. is considering the purchase of a combine harvester to harvest and sell wheat on one of its many properties. The combine harvester is expected to have a 10-year life. Other information pertaining to this potential investment follows: $412,835 Cost of the combine harvester Working capital investment required at the beginning of the harvester's life Annual cash receipts from the harvester Annual cash disbursements from the harvester Salvage value of harvester in 10 years Champ Farm requires a minimum return on investment of: $20,048 $240,550 $156,358 $33,027 10% At the end of the harvester's life, the working capital investment would no longer be required. Required: Calculate the net present value of harvesting wheat with the combine harvestor. Indicate whether Champ should undertake the investment, and why

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