• Company: Harper Electronics
• Current Equipment: Operable for 2 more years with no resale value.
• New Equipment Cost: $400,000
• Additional Working Capital: $70,000
• Additional Annual Cash Inflows: $90,000 for the first year, $180,000 for the next four years.
• Salvage Value: $30,000 at the end of the 5th year.
• Required Rate of Return: 12%
• One-time Installation Cost: $15,000 in the first year.

Requirements:

1. Calculate the NPV of the investment.
2. Determine if the investment is worthwhile.
3. Consider the salvage value of the new equipment.
4. Include the additional working capital and installation costs.
5. Use a discount rate of 12%.