Our company is considering adding another machine for the manufacture of tractors. The machine would cost $$865,000.$ It would have an estimated life of $4$ years and no salvage value. The company estimates that annual cash inflows would increase by $$100,500$ and that annual cash outflows would increase by $$115,000.$ Management has a required rate of return of $5\%.$

Calculate the net present value on this too see if this investment should be accepted.