Company A is considering the purchase of a new automated block and tackle system that would allow cleaners to more quickly and safely clean windows on skyscrapers. Company A anticipates the following 5- year cost savings from the purchase of the new equipment.
Years in the Future        Anticipated Profit
1                                              50,000
2 -                                            50,000
3 -                                            40,000
4 -                                            30,000
5 -                                            30,000
If the discount rate is 5% and the machine costs $140,000 payable at once, what is the net present value of the equipment? Is it a good purchase? (Write out the net earnings stream to generate your answer ) Net Present Value?