XYZ Company is considering the purchase of a new machine. The machine will cost $200,000 and is expected to last 10 years. However, the machine will need maintenance costing $25,000 at the end of year three and at the end of year seven. In addition, purchasing this machine would require an immediate investment of $30,000 in working capital which would be released for investment elsewhere at the end of the 10 years. The machine is expected to have a $12,000 salvage value at the end of 10 years. The machine will be used to generate net cash inflows of $50,000 per year in each of the 10 years. XYZ Company has a cost of capital of 9% and an income tax rate of 40%. For tax purposes, the machine would be classified in the MACRS 5-year class life and will be depreciated using the optional straight-line method.

Calculate the net present value (NPV) of this machine. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). You will need to use the present value table factor.

Present Value of a Lump-Sum Periods 3 7 8 9 3% 5% 0.9709 0.9524 0.9426 0.9070 0.9151 0.8638 0.8885 0.8227 0.8626 0.7835 0.8375 0.7460 0.8131 0.7107 0.7894 0.6768 0.7664 0.6446 0.7441 0.6139 0.7014 0.5568 0.64190.4810 0.6232 0.4581 0.6050 0.4363 0.5874 0.4155 0.5703 0.3957 0.5537 0.3769 0.5375 0.3589 0.4920 0.3101 0.4776 0.2953 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.6312 0.5835 0.5403 0.5003 0.4630 0.3971 0.3152 0.2919 0.2703 0.2503 0.2317 0.2146 0.1987 0.1577 0.1460 Rate of interest per period in percent 9% 10% 12% 14% 15% 0.9174 0.9091 0.8929 0.8772 0.8696 0.8417 0.8265 0.7972 0.7695 0.7561 0.7722 0.7513 0.7118 0.6750 0.6575 0.7084 0.6830 0.6355 0.5921 0.5718 0.6499 0.62090.5674 0.5194 0.4972 0.5962 0.5645 0.5066 0.4556 0.4323 0.5470 0.5132 0.4523 0.3996 0.3759 0.5019 0.4665 0.40390.3506 0.3269 0.4604 0.4241 0.3606 0.3075 0.2843 0.4225 0.3855 0.3220 0.2697 0.2472 0.3555 0.3186 0.2567 0.2076 0.1869 0.2745 0.2394 0.1827 0.1401 0.1229 0.2519 0.2176 0.1631 0.1229 0.1069 0.2311 0.1978 0.1456 0.1078 0.0929 0.2120 0.1799 0.1300 0.0946 0.0808 0.1945 0.1635 0.1161 0.08290.0703 0.1784 0.1486 0.1037 0.0728 0.0611 0.1637 0.1351 0.0926 0.0638 0.0531 0.1264 0.1015 0.0659 0.0431 0.0349 0.1160 0.0923 0.0588 0.0378 0.0304 16% 0.8621 0.7432 0.6407 0.5523 0.4761 0.4104 0.3538 0.3050 0.2630 0.2267 0.1685 0.1079 0.0930 0.0802 0.0691 0.0596 0.0514 0.0443 0.0284 0.0245 20% 0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1122 0.0649 0.0541 0.0471 0.0376 0.0313 0.0261 0.0217 0.0126 0.0105 15 16 18 19 20 21 24 Present Value of an Annuity Periods 3% 5% 0.9709 0.9524 2 1.9135 1.8594 2.8286 2.7233 3.7171 3.5460 4.5797 4.3295 6 5.41725.0757 7 6.2303 5.7864 8 7.0197 6.4632 9 7.7861 7.1078 10 8.5302 7.7217 12 9.9540 8.8633 15 11.9379 10.3797 16 12.5611 10.8378 17 13.1661 11.2741 18 13.7535 11.6896 19 14.3238 12.0853 20 14.8775 12.4622 21 15.4150 12.8212 25 17.4132 14.0939 Rate of interest per period in percent 8% 9% 10% 12% 14% 15% 16% 0.9259 0.9174 0.9091 0.8929 0.87720.8696 0.8621 1.78331.7591 1.7355 1.6901 1.64671.6257 1.6052 2.5771 2.5313 2.4869 2.4018 2.3216 2.2832 2.2459 3.3121 3.2397 3.16993.0374 2.9137 2.8550 2.7982 3.9927 3.8897 3.7908 3.6048 3.4331 3.3522 3.2743 4.62294.48594.3553 4.1114 3.8887 3.7845 3.6847 5.2064 5.0330 4.8684 4.5638 4.2883 4.1604 4.0386 5.7466 5.5348 5.3349 4.9676 4.6389 4.4873 4.3436 6.2469 5.9953 5.7590 5.3283 4.9464 4.7716 4.6065 6.7100 6.41776.1446 5.6502 5.2161 5.0188 4.8332 7.5361 7.1607 6.8137 6.1944 5.6603 5.4206 5.1971 8.5595 8.0607 7.6061 6.8109 6.1422 5.8474 5.5755 8.8514 8.3126 7.8237 6.9740 6.2651 5.9542 5.6685 9.1216 8.5436 8.0215 7.1196 6.3729 6.0472 5.7487 9.3719 8.7556 8.2014 7.2497 6.4674 6.1280 5.8178 9.6036 8.9501 8.36497.3658 6.5504 6.1982 5.8775 9.81829.1286 8.5135 7.4694 6.6231 6.25935.9288 10.0168 9.2922 8.6487 7.5620 6.6870 6.3125 5.9731 10.6748 9.8226 9.0770 7.8431 6.8729 6.4641 6.0971 20% 0.8333 1.5278 2.1065 2.5887 2.9906 3.3255 3.6046 3.8372 4.0310 4.1925 4.4392 4.6755 4.7296 4.7746 4.8122 4.8435 4.8696 4.8913 4.9476