Swifty industries is considering the purchase of new equipment costing 1,500,000 to replace existing equipment that will be sold for 150,000. the new equipment is expected to have 230,000 salvage value at the end of its 5-year life. during the period of its use, the equipment will allow the company to produce and sell an additinal 20,000 units annually at a sales price of 42$ per unit. those units will have a variable cost of 22 dollars per unit. the company will also incur an additional 90,000 in annual fixed costs.

A. caluclate the net present value of the proposed equipment purchase. assume that swifty uses a 10% discount rate.

New present value=

Do you recommend that swift industries invest in the new equipment?