You are evaluating a proposal to buy a new machine. The price is 120,500. The machine would be depreciated according to a MACRS-3 year class, as follows: the depreciation rates in years 1, 2, 3, and 4 are 33%, 45%, 15%, and 7%, respectively. The machine would require a 5,500 increase in NOWC. There would be no effect on revenues, but pretax labor costs would decline by 44,000 per year. The machine will have no salvage value after three years. The marginal tax rate is 35%, and WACC is 12%. Also, the firm spent 5,000 last year investigating the feasibility of using the machine. Evaluate the NPV of the project. Should it be taken?

can you please explain in detail how to get the answer