Kinky Copies may buy a high-volume copier. The machine costs $150,000 and will be depreciated straight-line over 5 years to a salvage value of $26,000. Kinky anticipates that the machine actually can be sold in 5 years for $37,000. The machine will save $26,000 a year in labor costs but will require an increase in working capital, mainly paper supplies, of $13,000. The firms marginal tax rate is 35%, and the discount rate is 7%. (Assume the net working capital will be recovered at the end of Year 5.)

Calculate the NPV.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV

$

Should Kinky buy the machine?

Yes

No