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Joanette, Incorporated, is considering the purchase of a machine that would cost $470,000 and would...

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Accounting

Joanette, Incorporated, is considering the purchase of a machine that would cost $470,000 and would last for 5 years, at the end of which, the machine would have a salvage value of $57,000. The machine would reduce labor and other costs by $117,000 per year. Additional working capital of $3,000 would be needed immediately, all of which would be recovered at the end of 5 years. The company requires a minimum pretax return of 15% on all investment projects. (Ignore income taxes.)
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.
Required:
Determine the net present value of the project.
Note: Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.
Net present value
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