Cash Flow Estimation Problems Problem 4: please do not solve using excel

Jupiter Inc. is considering the purchase of a new machine which will reduce manufacturing costs by $5,000 annually. Jupiter will use the MACRS accelerated method to depreciate the machine, and it expects to sell it at the end of its 5-year operating life for $10,000. The firm expects to be able to reduce net operating working capital by $15,000 when the machine is installed, but required working capital will return to the original level when the machine is sold. Jupiter's marginal tax rate is 40 percent, and it uses a 12 percent cost of capital to evaluate projects of this nature.

If the machine costs $60,000, what is the projects NPV? (MACRS 5 year schedule annual percentages: 20, 32, 19, 12, 11, and 6)