The management of Basler Corporation is considering the purchase of a machine that would cost $440,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $88,000 per year. The company requires a minimum pretax return of 12% on all investment projects.

Required:Determine the net present value of the project. Show your work!

should the machine be purchased?

why or why not should the machine be purchased