Sushi Food is considering the purchase of a new machine for its expansion. Its finance manager has developed the following after-tax cash flows forecast.

Year 0: Total investment = $21,000

Year 1: Net cash flow = $5,900

Year 2: Net cash flow = $6,100

Year 3: Net cash flow = $6,250

Year 4: Net cash flow = $6,600

Year 5: Net cash flow = $6,800

If the required rate of return is 12%, should Sushi Food proceed with the expansion plan? [Use Net Present Value (NPV) and Internal Rate of Return (IRR) to decide]

draw the timeline showing the known and unknown variables

Use 2-decimal places in your calculation.