Question: Jackson Manufacturing is evaluating a project that involves the purchase of a $300,000 machine, which will last for three years and is expected to produce

Jackson Manufacturing is evaluating a project that involves the purchase of a $300,000 machine, which will last for three years and is expected to produce 50,000 units per year. The sales price for each unit will be $44, and variable costs will be $30 per unit. The project will also incur fixed labor costs of $400,000 per year. It will require no additional investment in net working capital and is expected to have a salvage value of $80,000 in three years. The machine will be depreciated on a straight-line basis to a zero salvage value over its life. The tax rate is 40%, and the discount rate is 13%.

Construct a table of the relevant cash flows for the project, and compute the NPV. Round your answer to the nearest dollar.

Can you please show me how you got to the final answer in Excel? Thank you.

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