A division of Crane city Highlands manufacturing is considering purchasing a machine of 1,470,000 the automates the processes of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be 49,000 but it will save the company 363,000 in labor costs each year. The machine will have a useful lift of 10 years and it's salvage value in 10 years is estimated to be 294,000 however, for tax purposes, the initial purchase price of the machine will be depreciated straight line to zero if the marginal corporate tax rate is 32% in the appropriate discount rate is 12%. What is the NPV of this project?
