Question: Larson Manufacturing is considering purchasing a new injection-molding machine for $220,000 to expand its production capacity. It will cost an additional $15,000 to do the

Larson Manufacturing is considering purchasing a new injection-molding machine for $220,000 to expand its production capacity. It will cost an additional $15,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $97,000 per year. The machine will be used for six years, with an expected salvage value of $61,000. At an interest rate of 10%, would the purchase of the injection-molding machine be justified?

The present worth of the project is

(Round to the nearest dollar.)

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