Metro Industries is considering the purchase of new equipment costing $984,000 to replace existing equipment that will be sold for $147,600. The new equipment is expected to have a $164,000 salvage value at the end of its 3-year life. During the period of its use, the equipment will allow the company to produce and sell an additional 24,600 units annually at a sales price of $16 per unit. Those units will have a variable cost of $10 per unit. The company will also incur an additional $73,800 in annual fixed costs.

What is the Net Present Value? This is also assuming a 10% discount rate