Riverview Company is evaluating the proposed acquisition of a new production machine. The base price of the machine is $200,000 and installation costs would be $28,000. In addition, $10,000 in net working capital would be required for installation. The machine will be depreciated over 3 years using simplified straight-line depreciation. The machine would save the company $110,000 per year in operating costs. The company plans to keep the machine in place for 5 years. At the end of the fifth year, the machine will sell for $20,000. Riverview has a cost of capital of 12% and a marginal tax rate of 34%.

What is the NPV of the project?

Crossroad Corporation is trying to decide whether to invest in automating a production line. If the project is accepted, labor costs will decrease by $672,000 per year. However, other cash operating expenses will increase by $234,000 per year. The equipment will cost $309,000 and is depreciable over 8 years using a simplified straight line to zero salvage value. Crossroad will invest $28,000 in net working capital in the facility. The company has a marginal tax rate of 34%. Calculate the firm's annual cash flows associated with the new project.

Set your calculator to 4 decimal places and round to a whole number at the end. Do not enter the dollar sign. For example, if your answer is 1000, enter it as 1000.