Maylar, Inc., is considering the purchase of a machine that would cost $100,000 and would last for 9 years. At the end of 9 years, the machine would have a salvage value of $23,000. The machine would reduce labor and other costs by $19,000 per year. Additional working capital of $2,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 13% on all investment projects. Assuming a 13% return, what is the net present value of the proposed project? Round final answer to the nearest dollar. You must use the Annuity table when appropriate to get the correct answer. Hint: list each cash flow and when it occurs, note if inflow + or outflow - , if single sum or annuity and if you need to discount it using one of the PV tables, multiply by the appropriate factor.

QUESTION 3 If your answer to #1 was 0, should they accept the investment? Yes .No