The Pantalone Company, Inc., is considering purchasing a new grinding machine. The initial

outlay for the machine is $$185,000.$ The required rate of return for Pantalone Company, Inc.,

is $11\mathrm{.}5\%.$

The expected cash flows are as follows:

Year Expected After$-$tax Cash Flow

$$20,000$

$$40,000$

$$70,000$

$$70,000$

$$60,000$

$$40,000$

What is the Net Present Value of the investment?