Question: Germaine Metals is considering installing a new molding machine which is expected to produce operating cash flows of $59,000 per year for 7 years. At

Germaine Metals is considering installing a new molding machine which is expected to produce operating cash flows of $59,000 per year for 7 years. At the beginning of the project, inventory will increase by $21,500, accounts receivables will increase by $12,000, and accounts payable will increase by $21,550. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $270,500. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $39,000. What is the net present value of this project given a required return of 14.4 percent?

(I think these are right but I need NPV the most)

Change in NWC = $11950

CF0 = $282,450

CF7 = $109,950

NPV = $

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