I can't figure out how to get the $115,461 for NPV

Great White North makes and sells winter boots.They have hired you to evaluate information gathered regarding a potential long-term investment and have provided you with information gathered about the opportunity below.Evaluate the information, determine what is relevant, then use excel to calculate the NPV.Based on the information and calculation, determine if Great White should pursue the investment. The applicable tax rate is 25%.A consultant was hired to gather information and was paid $10,000.

Scenario:Purchase a new machine which can increase capacity for making existing styles of winter boots to fill unmet demand.CCA for this machine is expected to be 30%

By purchasing this machine Great White expects they can make and sell an additional 45,000 pairs of boots per year.The machine is expected to have a useful life of four years.Additional information can be found below:

1.The sell price of boots is $200 with variable cost at 80% of revenue.

2.Maintenance on the machine is expected to be $35,000 per year.

3.The initial purchase of the machine is expected to be $4,500,000 and it will depreciate using straight-line over four years.

4.The salvage of the machine after four years is expected to be $200,000.

5.Working capital required is expected to be $250,000 all recovered by the end of four years.

6.The discount rate deemed appropriate to review this project is 8%.

7.Promotion expenses are expected to be $30,000 per year in the first two years and $20,000 per year in years three and four.

8.Great White can trade in an existing machine and receive $150,000 on the trade in.

Required:

1)In Excel,NPV analysis using either available financial formula calculating the NPV of the investment. Indicate below if it should be pursued.(12 marks)

*Note: formulas for the PV of the tax shield and loss of the tax shield have been included in Excel.

Answer: npv= 115,461>0 should accept the investment