Phranque Co. want to invest in a new machine and consult you to help finish their capital budget. You are provided the following information: - There is an interest expense of $25,000 per year. - The machine will cost $1,200,000 and will be fully depreciated over three years. - At the end of the three years the machine will be sold for $100,000. - The project will require net working capital of $355,000 today and will be entirely recovered at the end of the third year. If the company has a cost of capital of 8% and a tax rate of 30%, what is the NPV of the project and should Phranque Co. accept the project? (Please show all your working)