Monster corp is considering buying a new machine for $450,000. The machine has an 8 year life (S/L) and zero salvage value. The machine will allow...

Monster corp is considering buying a new machine for $450,000. The machine has an 8 year life (S/L) and zero salvage value. The machine will allow monster to save $80,000/year in material and labor. Monster will sell an old machine for $25,000. The sale will take place on the same day the new machine is bought. The old machine has a NBV= 14,000 (2 years remain). The new machine will require an overhaul in year 4 = $ 17,000. Monster has a 30% tax rate. What is the NPV of this investment using a 6% discount rate?

NPV_______?

COST________?

Annuity________?