You are evaluating the purchase of new machinery for a project being proposed by the CFO of your company. The cost of the machinery is $240,000, and it would cost another $60,000 to adapt it to your firms purposes. The machinery would be sold after 6 years for $50,000. Use of the machinery would require an increase in Net Working Capital of $15,000, which will be recovered in the last year of the project. The machinery is expected to save the firm $58,000 per year in operating costs.

A. What is the initial outlay of the project?

B. What is the terminal cash flow?

C. Ignoring the effect of the tax saving for Depreciation, what is the NPV of the purchase of the machinery, if the companys required rate of return is 7.25%?