Amazing Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Amazing has accumulated regarding the new machine is:

Cost of the machine $ 100,000 Increased contribution margin $ 24,000 Life of the machine 8 years Required rate of return 12 % Amazing estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts.

a. Net present value (NPV)?