Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $483,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Sales of new product	$ 1,980,000
Expenses
Materials, labor, and overhead (except depreciation)	1,480,000
DepreciationMachinery	115,750
Selling, general, and administrative expenses	172,000

Required: 1. Determine income and net cash flow for each year of this machines life. 2. Compute this machines payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 6%.

I need help with question 3 please! What would be the initial investment here? because It marks the $483,000 as a wrong answer.

	Net Cash Flows	x	Present Value at 6%	=	Present Value of Net Cash Flows
Years 1-4	$328,000	x	3.4651	=	$1,136,553
Salvage value, year 4	$20,000	x	0.7921	=	15,842
Total				=	1,152,395
Initial investment				=
Net present value				=	$669,395