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Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return

Follow the format shown in Exhibit $12$B$\mathrm{.}1$ and Exhibit $12$B$\mathrm{.}2$ as you complete the requirement below.

Woodard Company wants to buy a numerically controlled $($NC$)$ machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $$700,000.$ The NC equipment will last five years with no expected salvage value. The expected after$-$tax cash flows associated with the project follow:

Year Cash Revenues Cash Expenses

$1$ $$1,500,000$ $$1,200,000$

$21,500,0001,200,000$

$31,500,0001,200,000$

$41,500,0001,200,000$

$51,500,0001,200,000$

Required:

Compute the investment's Net Present Value, assuming a required rate of return of $12$ percent. Round present value calculations and your final answer to the nearest dollar.

NPV $=$ fill in the blank $1$ of $1$$