Question:Miller Ltd. Has been considering the purchase of a new machine. The existing machine is operable for three more years and will have a zero disposal price. If the machine is disposed of now, it may be sold for $35,000. The new machine will cost $180,000 and an additional cash investment in working capital of $25,000 will be required. The new machine will reduce the average amount of time required on the production line and will decrease labour costs. The investment is expected to net $80,000 in additional cash inflows during the year of acquisition and $120,000 each additional year of use. The new machine has athree-year life, andzero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. The working capital investment will not be recovered at the end of the asset's life. The equipment would qualify as a class 8 asset and the company will continue to have assets in the pool. Miller's tax rate is 28% and discount rate is 13%.

(CCA - 20%)

The ANSWER of NPV = $31,708, AND I want to know how to calculate