Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $151,640, including freight and installation. Henries estimated the new machine would increase the companys cash inflows, net of expenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value.

1.Using a discount rate of 10%, what is the machines net present value? Interpret your results. (Round discount factor(s) to 3 decimal places.)