A company is adding an additional machine to increase its operating capacity for the next 12 years. As utilization of the new machine ramps up, the company will see changes in revenues, operating costs, taxes, accounts receivable, inventories, accounts payable and other elements of net working capital. For each year during the project, expectations are detailed below: Revenue will be $100,000 Variable costs will be 60% of revenue Fixed costs (including depreciation expense) will be $30,000 Depreciation expense caused by the new machine will be $5,000 Accounts receivable will increase by $8,000 Inventory will increase $9,000 Accounts payable will increase $6,000 Accrued expenses will increase $2,000 The effective tax rate is 30%

During year 8 of the project, the machine will require a major overhaul, which will cost $10000. This investment will extend the useful life of the machine until the final year of the project (year 12). No other factors change, and at the end of year 12, the machine will have no salvage value, so there is no terminal value involved. If the initial investment is $16,000 and the required rate of return is 9%, what is the net present value of this proposal?

Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 If your result is less than zero, enter a negative number, like this: -90.1234

A company is adding an additional machine to increase its operating capacity for the next 12 years. As utilization of the new machine ramps up, the company will see changes in revenues, operating costs, taxes, accounts receivable, inventories, accounts payable and other elements of net working capital. For each year during the project, expectations are detailed below: Revenue will be $100,000 Variable costs will be 60% of revenue Fixed costs (including depreciation expense) will be $30,000 Depreciation expense caused by the new machine will be $5,000 Accounts receivable will increase by $8,000 Inventory will increase $9,000 Accounts payable will increase $6,000 Accrued expenses will increase $2,000 The effective tax rate is 30%

During year 6 of the project, the machine will require a major overhaul, which will cost $10000. This investment will extend the useful life of the machine until the final year of the project (year 12). No other factors change, and at the end of year 12, the machine will have no salvage value, so there is no terminal value involved. If the initial investment is $16,000 and the required rate of return is 9%, what is the net present value of this proposal?

Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 If your result is less than zero, enter a negative number, like this: -90.1234