Question: Cliff Corp is considering a $120,000 machine that will reduce pretax operating costs by $50,000 per year over a 3-year period. Assume no changes in

Cliff Corp is considering a $120,000 machine that will reduce pretax operating costs by $50,000 per year over a 3-year period. Assume no changes in net working capital and a salvage value of zero. Further assume straight-line depreciation to zero, a marginal tax rate of 40%, and a required return of 12%. The project NPV is (round to nearest dollar):

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