Company income projection for five year:

A=4 (PARAMETER)

Yearly saving: $ (500 000+10 000 *A)

Machinery's price tag: $ 2 000 000,

Upfront payment : $ 400 000,

Sold after four years : $ (900 000+ 3 000 * A)

Insurance: $ 40 000 per year

Tax Rate : % 34

MARR: % 17

The principal of the loan will be paid back with equal installments in five years, at the end of the each year

Sale Tax: % 4

Loan Finance Rate: %15

For depreciation calculations, use Table 2.2 of the book.

The question is how to calculate NPV(Net Present Value) at the end of the five-year operation? Thank you very much!!!