NPV

Commodity Copper is considering the installation of a $$1,800,000$ production conveyor system that would generate the following labor cost savings over its $10-$year life:

YearsAnnual Labor Cost Savings$12$$$280,00035340,00068288,800910260,000$

a$.$ The system will have no salvage at the end of its $10-$year life, and the company uses a discount rate of $12$ percent. What is the pre$-$tax net present value of this potential investment?

Note: Round your final answer to the nearest whole dollar; use a negative sign to indicate a negative net present value.

$Answer $1$

b$.$ Should the company make this investment based on the results of part $($a$)?$Answer $2$YesNo