"Your company has asked you to consider the purchase of a new machine for a project. Details of this potential purchase are provided below.

-The project life is 3 years.

The machine costs $187,000.

* You have decided your company will pay cash for half of this machine immediately, and will borrow the remaining half at 5% annual rate compounded annually over 3 years.

* The machine will be depreciated using a seven year MACRS approach.

Annual O&M costs (expenses) of the machine are $20,000.

Annual labor savings (revenues) are $84,000.

Salvage value at the end of year 3 will be $42,000.

Working capital requirement is initially $28,000. Any investment in working capital will be recovered at the end of the project.

Assume an income tax rate and gains tax rate of 21%.

Find the NPW of this project based on a MARR of 14%."