M.T. Glass, Inc. is considering the acquisition of a new piece of heavy machinery to

replace an old, outdated machine currently used in its business operations. The new

machine would cost $180,000 and is expected to last 9 years. The new machine would

require a repair of $25,000 in year seven and another repair costing $8,000 in year

eight. In addition, purchasing this new machine would require an immediate investment

of $30,000 in working capital which would be released for investment elsewhere at the

end of the 9 years. The machine is expected to have a $10,000 salvage value at the end

of 9 years. The old, outdated machine costs $160,000 per year to maintain and run. The

new machine is only expected to cost $90,000 per year to maintain and run. M.T. Glass

has a cost of capital of 16% and an income tax rate of 40%.

Calculate thenet present value (NPV)of the new machine. If your answer is negative,

place a minus sign in front of your answer with no spaces in between (e.g., -1234).

Do not use decimals in your answer.

Using the tables attached

Future Value of a Lump-Sum Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 22 23 24 25 60 3% 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.4258 1.5580 1.6047 1.6529 1.7024 1.7535 1.8061 1.8603 1.9161 1.9736 2.0325 2.0938 5.8916 4% 1.1249 1.1699 1.2167 1.2653 1.3159 1.3686 1.4233 1.4802 1.6010 1.8009 1.8730 1.9479 2.0258 2.1069 2.1911 2.2788 2.3699 2.4647 2.5633 2.6658 10.5196 5% 1.1576 1.2155 1.2783 1.3401 1.4071 1.4775 1.5513 1.6289 1.7959 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 2.7860 2.9253 3.0715 3.2251 3.3864 18.6792 Rate of interest per period in percent 6% 8% 9% 10% 1.1910 1.2597 1.2950 1.3310 1.2625 1.3605 1.4116 1.4641 1.3382 1.4693 1.5386 1.6105 1.4185 1.5869 1.6771 1.7716 1.5036 1.7138 1.8280 1.9487 1.5939 1.8510 1.9926 2.1436 1.6895 1.9990 2.1719 2.3580 1.7909 2.1589 2.3674 2.5938 2.0122 2.5182 2.8127 3.1384 2.3965 3.1722 3.6425 4.1773 2.5404 3.4259 3.9703 4.5950 2.6928 3.7000 4.3276 5.0545 2.8543 3.9960 4.7171 5.5599 3.0256 4.3157 5.1417 6.1159 3.2071 4.6610 5.6044 6.7275 3.3996 5.0338 6.1088 7.4003 3.6035 5.4365 6.6586 8.1403 3.8198 5.8715 7.2579 8.9543 4.0489 6.3412 7.9111 9.8497 4.2919 6.8485 8.6230 10.8347 32.9877 101.257 176.031 304.482 12% 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1059 3.8960 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 10.8039 12.1003 13.5524 15.1786 17.0000 897.597 14% 1.4815 1.6890 1.9254 2.1950 2.5023 2.8526 3.2519 3.7072 4.8179 7.1379 8.1372 9.2765 10.5752 12.0557 13.7435 15.6676 17.8610 20.3616 23.2122 26.4619 2595.92 16% 1.5609 1.8106 2.1003 2.4364 2.8262 3.2784 3.8030 4.4114 5.9360 9.2655 10.7480 12.4677 14.4625 16.7765 19.4608 22.5745 26.1864 30.3762 35.2364 40.8742 7370.20 14% 0.6750 0.5921 0.5194 0.4556 0.3996 0.3506 0.3075 0.2697 0.2076 0.1401 0.1229 0.1078 0.0946 0.0829 0.0728 0.0638 0.0431 0.0378 15% 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.1869 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 0.0531 0.0349 0.0304 20% 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1122 0.0649 0.0541 0.0471 0.0376 0.0313 0.0261 0.0217 0.0126 0.0105 Present Value of a Lump-Sum Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 24 25 3% 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7014 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.5375 0.4920 0.4776 5% 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5568 0.4810 0.4581 0.4363 0.4155 0.3957 0.3769 0.3589 0.3101 0.2953 6% 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.4970 0.4173 0.3937 0.3714 0.3503 0.3305 0.3118 0.2942 0.2470 0.2330 Rate of interest per period in percent 8% 9% 10% 12% 0.7938 0.7722 0.7513 0.7118 0.7350 0.7084 0.6830 0.6355 0.6806 0.6499 0.6209 0.5674 0.6311 0.5963 0.5645 0.5066 0.5835 0.5470 0.5132 0.4523 0.5403 0.5019 0.4665 0.4039 0.5003 0.4604 0.4241 0.3606 0.4632 0.4224 0.3855 0.3220 0.3971 0.3555 0.3186 0.2567 0.3152 0.2745 0.2394 0.1827 0.2919 0.2519 0.2176 0.1631 0.2703 0.2311 0.1978 0.1456 0.2503 0.2120 0.1799 0.1300 0.2317 0.1945 0.1635 0.1161 0.2146 0.1784 0.1486 0.1037 0.1987 0.1637 0.1351 0.0926 0.1577 0.1264 0.1015 0.0659 0.1460 0.1160 0.0923 0.0588 Future Value of an Annuity Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 22 23 24 25 60 3% 3.0909 4.1836 5.3091 6.4684 7.6625 8.8923 10.1591 11.4639 14.1920 18.5990 20.1569 21.7616 23.4144 25.1169 26.8704 28.6765 30.5368 32.4529 34.4265 36.4593 163.053 4% 3.1216 4.2465 5.4163 6.6330 7.8983 9.2142 10.5828 12.0061 15.0258 20.0236 21.8245 23.6975 25.6454 27.6712 29.7781 31.9692 34.2480 36.6179 39.0826 41.6459 237.991 5% 3.1525 4.3101 5.5256 6.8019 8.1420 9.5491 11.0266 12.5779 15.9171 21.5786 23.6575 25.8404 28.1324 30.5390 33.0660 35.7193 38.5052 41.4305 44.5020 47.7271 353.584 Rate of interest per period in percent 6% 8% 9% 10% 3.1836 3.2464 3.2781 3.3100 4.3746 4.5061 4.5731 4.6410 5.6371 5.8667 5.9847 6.1051 6.9753 7.3359 7.5233 7.7156 8.3938 8.9228 9.2004 9.4872 9.8975 10.6366 11.0285 11.4359 11.4913 12.4876 13.0210 13.5795 13.1808 14.4866 15.1929 15.9374 16.8699 18.9771 20.1407 21.3843 23.2760 27.1521 29.3609 31.7725 25.6725 30.3243 33.0034 35.9497 28.2129 33.7502 36.9737 40.5447 30.9057 37.4502 41.3013 45.5992 33.7560 41.4463 46.0185 51.1591 36.7856 45.7620 51.1601 57.2750 39.9928 50.4229 56.7645 64.0025 43.3923 55.4568 62.8733 71.4028 46.9958 60.8933 69.5319 79.5430 50.8156 66.7648 76.7898 88.4973 54.8645 73.1059 84.7009 98.3471 533.128 1253.21 1944.79 3034.82 12% 3.3744 4.7793 6.3529 8.1152 10.0890 12.2997 14.7757 17.5487 24.1331 37.2797 42.7533 48.8837 55.7497 63.4397 72.0524 81.6987 92.5026 104.603 118.155 133.333 7471.64 14% 3.4396 4.9211 6.6101 8.5355 10.7305 13.2328 16.0853 19.3373 27.2707 43.8424 50.9804 59.1176 68.3941 78.9692 91.0249 104.768 120.436 138.297 158.659 181.871 18535.1 16% 3.5056 5.0665 6.8771 8.9775 11.4139 14.2401 17.5185 21.3215 30.8502 51.6595 60.9250 71.6730 84.1407 98.6032 115.380 134.841 157.415 183.601 213.978 249.214 46057.5 12% 2.4018 3.0374 3.6048 4.1114 4.5638 4.9676 5.3283 5.6502 6.1944 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.5620 7.8431 15% 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.4206 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.3125 6.4641 20% 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.4392 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9476 Present Value of an Annuity Periods 3 4 5 6 7 8 9 10 12 15 16 17 18 19 20 21 25 % 2.9703 3.9505 4.9259 5.8964 6.8621 7.8230 8.7791 9.7304 11.6189 14.4166 15.3399 16.2586 17.1728 18.0824 18.9874 19.8880 23.4456 3% 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.9540 11.9379 12.5611 13.1661 13.7535 14.3238 14.8775 15.4150 17.4132 5% 2.7233 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.8633 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 12.8212 14.0939 Rate of interest per period in percent 6% 8% 9% 10% 2.6730 2.5771 2.5313 2.4869 3.4651 3.3121 3.2397 3.1699 4.2124 3.9927 3.8897 3.7908 4.9173 4.6229 4.4859 4.3553 5.5824 5.2064 5.0330 4.8684 6.2098 5.7466 5.5348 5.3349 6.8017 6.2469 5.9953 5.7590 7.3601 6.7101 6.4177 6.1446 8.3838 7.5361 7.1607 6.8137 9.7123 8.5595 8.0607 7.6061 10.1059 8.8514 8.3126 7.8237 10.4773 9.1216 8.5436 8.0215 10.8276 9.3719 8.7556 8.2014 11.1581 9.6036 8.9501 8.3649 11.4699 9.8182 9.1286 8.5135 11.7641 10.0168 9.2922 8.6487 12.7834 10.6748 9.8226 9.0770