strategic accounting

ACCT520-50 Midterm Exam Fall 2022 15. (16 points) Hobie Corp. has the following information for the purchase of a new machine in its manufacturing process: Cost of the machine $ 225,000 Expected useful life - the cost of the machine will be 4 years depreciated on a straight-line basis to a terminal disposal value of zero. Working capital investment upon machine purchase $12,000 (fully recovered at the end of the useful life) Annual cost savings with the new machine $ 66,000 Machine's expected salvage value at the end of four $8,000 years Required rate of return 8% Hobie's tax rate 15% a. Calculate the net present value (NPV) of the project (round your solution to dollars)