Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $33,000 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%. Working capital would increase by $35,000 initially, but it would be recovered at the end of the project's 5-year life. Madison's marginal tax rate is 25%, and a 13% cost of capital is appropriate for the project.

the project's NPV, IRR, MIRR, and payback are as follows.

NPV: $ -$2,684

IRR: 10.83 %

MIRR: 10.94 %

Payback: 3.06 years

Assume management is unsure about the $110,000 cost savings - this figure could deviate by as much as plus or minus 20%. Do not round intermediate calculations. Round your answers to the nearest dollar. Negative values, if any, should be indicated by a minus sign.

Calculate the NPV if cost savings value deviate by plus 20%.

$

Calculate the NPV if cost savings value deviate by minus 20%.

$