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Deutsche Post is considering the purchase of a new machine to sort parcels more effectively. The forecasted increase in revenues is $80 million p.a. for

Deutsche Post is considering the purchase of a new machine to sort parcels more effectively. The forecasted increase in revenues is $80 million p.a. for the next 15 years. It will require extensive maintenance and engineering repairs of $9 million every 5 years once the machine is in operation (i.e. Years 5, 10 and 15). It will cost the company $46 million to purchase and set up the machine but it can be sold to Russia for $5 million at the end of the project's life. If the required rate of return is 9.5% p.a., what is this project's net present value (NPV)? Your response must be entered as a numerical value with 0 decimal places and excluding the dollar sign ($). Answer: F

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