Using Net present value : Bulldog management is evaluating whether to buy a new converting machine, The firm uses $18\%$ to discount such project cash flows. Use $2$ decimals for the calculation. Use only information in the question.

Bulldog is set to invest $$2,000,000$ in the machine, concurrently selling fully amortized old equipment for $$40,000$ as scrap. The new equipment$$s $5-$year amortization plan $,$ employing the straight$-$line method, incurs an annual repair and maintenance expense of $$350,000.$ UCW plans to pay cash and with a $5-$year loan of $$450,000$ at $5\%$ interest rate per year on the full loan amount $,$ by the end of $5$ year the loan should be paid in full.

$1.$ Year $1$: expecting $$4$million in revenue with a $15\%$ gross profit margin, offset by $$250,000$ in SG&A expenses and $$300,000$ in depreciation costs.

$2.$ Year $2$: Project $$5$million in revenue with a $20\%$ gross profit margin, alongside a $$400,000$ depreciation expense and $10\%$ increase in SG& A expenses compared to the previous year.

$3.$ Year $3$: Anticipating an additional $$25,000$ one$-$time licensing fee for the machinery, coupled with $25\%$ revenue surge from the prior year, maintaining a $20\%$ margin due to accessing a new market segment. SG& A expected to match those of Year $2.$

$4.$ Year $4$: Envisioning stable sales with SG&A costs remaining in line with year $3,$without any licensing fees.

$5.$ Year $5$: Expecting $$5\mathrm{.}2$ million in revenue with a $35\%$ gross profit margin, countered by $$350,000$ in SG&A expenses. Planning to divest the machinery with an estimated resale value of approximately $$250,000$ while exploring the newer, the resales of old machine would be around $$250,000.$

Use NPV to provide your recommendation whether to invest, why? You must show your calculation in order to get marks. For the calculator, you must identify each element that leads to computing the results.