QUESTION 6 "You are considering the purchase of a new machine for a project. Details of this potential purchase are provided below The project life is 3 years The machine costs $184,000 * You will pay cash for half of this machine immediately, and will borrow the remaining half at 8.2% annual rate compounded annually over 3 years * The machine will be depreciated using a seven year MACRS approach Annual O&M costs (expenses) of the machine are $18,000 Annual labor savings (revenues) are $120,000 Salvage value at the end of year 3 will be $60,000 Working capital requirement is initially $37,000. Any investment in working capital will be recovered at the end of the project. Assume an income tax rate and gains tax rate of 35% Find the NPW of this project based on a MARR of 15.1%