Floyd Brothers Ltd is considering the purchase of a two - ton press which will allow the firm to stamp out auto fenders . The equipment costs $ 340,000 . The project is expected to produce after - tax cash flows of $ 75,000 the first year and increase by $ 10,000 annually the after - tax cash flow in the following 3 years . Liquidation of the equipment will net the firm $ 13,000 in cash at the end of the fourth year . Assume the required return is 12 % . What is the project's net present value ? Draw a time line and explain