The Rosco company is trying to decide if they should purchase Machine Alpha. The purchase price of Machine Alpha is $345,700 and will require a working capital of $54,500.

Machine Alpha will require a major overhaul in year 3 and year 6 of $37,500.

The increase in revenue will be: Years 1, Year 2, and Year 3 will have an annual increase in revenue of $98,700 (the same amount for all three years).

Year 4 - $128,400, Year 5 - $135,300, Year 6 - $86,100, Year 7 - $72,300 and Year 8 - 64,900.

At the end of year 8, the company will sell the machine for $18,700.

Calculate the net present value of Machine Alpha using a 16% rate of return. Show your work and indicate if the Rosco Company should purchase Machine Alpha.

Round your net present value answer to the nearest whole dollar. Show Calculation for more understanding.