Oregon Forest Products will acquire new equipment that falls under the five-year MACRS category. The cost is $420,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years.

Year 1 $ 135,000

Year 2 182,000

Year 3 125,000

Year 4 68,000

Year 5 69,000

Year 6 39,000

The firm is in a 35 percent tax bracket and has a 12 percent cost of capital.

A) Calculate the net present value.

B) Under the net present value method, should Oregon Forest Products purchase the equipment asset? (YES or NO).

I keep calculating -14,610.58 as the NPV