Required information

$[$The following information applies to the questions displayed below.$]$

Montego Production Company is considering an investment in new machinery for its factory. Various information about the

proposed investment follows:

Initial investment

$$860,060$

Useful life

Salvage value

Annual net income generated

Montego's cost of capital

$$20,000$

$$66,000$

$11\%$

Assume straight line depreciation method is used.

Help Montego evaluate this project by calculating each of the following:

Required:

Recalculate Montego's NPV assuming its cost of capital is $12$ percent. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity

of $$1,$ Present Value Annuity of $$1.)$

Note: Use appropriate factor$($s$)$ from the tables provided. Negative amount should be indicated by a minus sign. Round your

answer to $2$ decimal places.

Net Present Value