The management of Esme Corporation is considering the purchase of a machine that would cost $500,000, would last for 9 years, and would have no salvage value. The machine would reduce labor and other costs by $90,000 per year. The company requires a minimum pretax return of 8% on all investment projects.

9. The present value of the annual cost savings of $90,000 is: ___

10. The net present value of the proposed project is ____: