Jerry's Corp. is considering replacing an existing processor with a new one that costs $220,000. Shipping and setup costs for the new processor are estimated.to be $13,000. Jerry's Corp.'s working capital is expected to increase by $16,000 when the new processor begins operation and is expected to be fully recoverable at the end of the project. The new processor's useful life is expected to be 5 years and its salvage value at that point is estimated to be $41,700. The old processor had an installed cost of $140,000 when it was placed in service three years ago and is being depreciated to a zero book value using a 5 year ACRS life. The processor can be sold today for $27,000. The increase in revenues and before tax cash operating expenses for the new processor compared to continuing with the old processor are shown in the table below Jerry's Corp. has a marginal tax rate of 34% and a cost of capital of 11%.

	Incremental Revenues	Incremental Cash Operating Expenses	ACRS Depr. %
1	$82,000	$23,000	15
2	$76,000	$19,000	22
3	$88,000	$27,000	21
4	$90,000	$26,000	21
5	$91,000	$28,000	21

The initial investment for the project is?

The initial investment for the project is?

The installed cost of the new processor is?

Incremental depreciation expense for year 2 in the life of the new processor is?

Operating Cash Flow After Tax (OCFAT) for year 3 of the life of the new processor is?

After tax salvage value of the new processor at the end of year 5 is?

Operating cash flow after tax (OCFAT) for year 5 of the life of the new processor is?

NPV of the project is?