"I'm not sure we should spend $420,000 for that automated welding machine," said Sandy Beach, president of the Superior Equipment Company. "That's a lot of money, and it also requires us to have a $76,000 investment in working capital. Also, the manufacturer admits it will cost an additional $45,000 at the end of seven years to replace worn-out parts." "I admit it's a lot of money," said Betty DeRose, the controller. "But you know the turnover problem we've had with the welding crew. This machine would replace five welders at a net cost savings of $105,000 per year. When you figure that this welding machine will last for 12 years, that adds up to a pile of savings. I'm sure the return will be greater than our 10% after-tax cost of capital. Plus, we can get $12,100 out of our old welding equipment if we sell it now, and the new machine will be able to be sold in 12 years for $22,000." Assume that the working capital will be released at the end of the 12 years for use elsewhere, and the income tax rate for the Superior Equipment Company is 40%. Calculate the net present value of the automated welding machine. To answer this question use the present value table factors given below. No credit will be awarded for this question using a means other than the table factors given below to answer this question. Factors from the present value of a lump sum table for: i = 10%: n = 1 n-3 0.910 0.750 n-4 0.680 n 6 0.570 n - 7 0.519 n-18 0.399 n = 12 0.329 Factors from the present value of an annuity table for: i = 10%: n-3 0.910 2.490 n = 7 4.879 n = 12 6.810 3.170 4.360 6.150