Management is considering purchasing a machine for $780,000 that would have a useful life of 8 years and $52,000 salvage value. The asset would generate annual net cash inflows of $121,500 throughout its useful life. The project would require additional working capital of $95,000. The companys discount rate is 5%. In year 6 the machine will require $28,000 overhaul.

What is the net present value of the purchase?

		(11,118) net present value of the project - reject the project
		(75,418) net present value of the project - reject the project
		11,118 net present value of the project - Accept the project
		None of the above