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Liberty Textiles plans to upgrade its weaving machines. The existing machines can be sold for $60,000 now. The new machines cost $240,000 and require an

Liberty Textiles plans to upgrade its weaving machines. The existing machines can be sold for $60,000 now. The new machines cost $240,000 and require an additional $70,000 for installation.
Expected Cash Flows:
Year 1: $65,000
Year 2: $160,000
Year 3: $160,000
Financial Information:
Machine lifespan: 3 years
Required rate of return: 11%
Task: Calculate the NPV of this investment and suggest whether Liberty Textiles should proceed with the purchase.

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