Difend Cleaners has been considering the purchase of an industrial dryminus

cleaning machine. The existing machine is operable for three more years and will have a zero disposal price. If the machine is disposednow, it may be sold for $ 150 comma 000

$150,000. The new machine will cost $ 430 comma 000

$430,000 and an additional cash investment in working capital of $ 180 comma 000

$180,000 will be required. The new machine will reduce the average amount of time required to wash clothing and will decrease labor costs. The investment is expected to net $ 200 comma 000

$200,000 in additional cash inflows during the first year of acquisition and $ 250 comma 000

$250,000 each additional year of use. The new machine has a threeminus

year life, and zero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem. The working capital investment will not be recovered at the end of theasset's life.

What is the net present value of theinvestment, assuming the required rate of return is 9

9%? Would the company want to purchase the newmachine?