Herky Foods is considering acquisition of a new wrapping machine. The initial investment is estimated at $1.25

million, and the machine will have a 5-year life with no salvage value. Using a discount rate of 66%,

determine the net present value (NPV) of the machine given its expected operating cash inflows shown in the following table:

1	$400,000
2	$375,000
3	$300,000
4	$350,000
5	$200,000

. Based on the project's NPV, should Herky make this investment? Why?