Sample Test Problem 11.02 Your answer is incorrect. Try again. A division of Ivanhoe Manufacturing is considering purchasing for $1,200,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $40,000, but it will save the company $296,000 in labor costs each year. The machine will have a usefu life of 10 years, and its salvage value in 10 years is estimated to be $240,000. Straight-line depreciation will be used in calculating taxes for this project, and the marginal corporate tax rate is 32 percent. t the appropriate discount rete is 12 percent, what is the NPV of this projyect? (0o not round discount factor, Round intermediate NPV of the project 497,.248