You were reviewing a proposal to buy production equipment for $236,000 in 2017. The equipment is a 30% CCA class asset. At the end of 8 years, it has an estimated salvage value of $34,000. If the equipment is purchased, the company will save $64,500 of annual operating costs, before-tax. The companys marginal tax rate is 20% and its cost of capital is 16%. Do not round when calculating PV of CCA tax shield, etc.

Calculate the projects NPV using the six-step approach. Would you recommend approval for the project? Enter the following amounts to the nearest dollar without dollar sign or commas, e.g. 15000, if negative, -15000.

1) Initial investment:	Answer
2) PV of project savings:	Answer
3) PV of CCA:	Answer
4) PV of salvage:	Answer
5) PV of CCA lost:	Answer
6) Net Present Value: