The production machinery cry GATE nearing the end of its usefu Time left 0:14:59 needs to be replaced. Forecasts have been made for the initial capital cost, proportional sales income and operating costs of the replacement machine, which is expected to have a useful life of three years: Initial investment $500,000 Cash flows Year Sales income Operating costs 1 $280,000 $100,000 2 $330,000 $120,000 3 $390,000 $130,000 The company appraises capital investment projects using a cost of capital of 10% per annum. What is the NPV of this machine? The Discount factor of 10% is as follows Year DF 0 1.000 1 0.909 2 0.826 3 0751