(Incremental cash flows and NPV) Procter & Gamble is considering buying a new machine that costs $100,000. The machine requires $8,000 in setup costs that are expensed immediately and $12,000 in additional working capital. The machine's useful like is 10 years, after which it can be sold for a salvage value of $30,000. The machine requires a maintenance overhaul costing $14,000 at the end of year 7. The overhaul is fully expensed when it is done. P&G uses straight-line depreciation, and the machine will be depreciated to a book value of zero on a six-year basis. P&G has a tax rate of 40% and the project's cost of capital is 13%. The machine is expected to increase revenues minus expenses by $55,000 per year. What is the NPV of buying the machine?

Possible answers:

		-$46,321.89
		-$23,389.21
		-$455.93
		$924.45
		$21,588.71
		$36,833.33
		$57,222.22
		$87,395.33
		$94,183.52