lana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.02 million.

lana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.02 million. The lathe will cost $35,700 to run, will save the firm $127,500 in labor costs, and will be useful for 10 years. Suppose that for tax purposes, the lathe will be depreciated on a straight-line basis over its 10-year life to a salvage value of $102,000. The actual market value of the lathe at that time also will be $102,000. The discount rate is 9%, and the corporate tax rate is 40%. What is the NPV of buying the new lathe?