Find the NPV of a project which requires a $750,000 machine purchase and has anticipated sales of $1,000,000, COGS of $365,000, SG&A of $299,000, and with depreciation straight-line to 0 over the project's eight year life. The tax rate is 40% and the discount rate is 15%. Assume the machine's market value is $325,000 at the end of the project.

1 Annual profit and loss (P&L) 2 Sales 3 Minus COGS 4 Minus SG&A 5 Minus epreciation 6 Profit before taxes 7 Subtract taxes 8 Profit after taxes 9 0 Calculating the annual cash flow 1 Profit after taxes 2 Add back depreciation 3 Cash flow 4 5 Calculating the cash flow from salvage value 6 Machine market value, year 8 7 Book value, year 8 8 Taxable gain 9 Taxes paid on gain o Cash flow from salvage value 1 2