The machine costs $92,000 and depreciation is calculated straight line (equal amounts) over 4 years Every year, the machine increases cash flows by...

• The machine costs $92,000 and depreciation is calculated straight line (equal amounts) over 4 years
• Every year, the machine increases cash flows by an amount of $34,000 (Taxes, Opportunity Cost etc. have all been accounted for in this number and there is no Net Working Capital)

• After 3 years (when the machine has only been depreciated for 3 years and therefore the book value is not zero) the machine is sold for $30,000; therefore, this is a 3 year project

• The rate of discount = 9%
• The tax rate = 40%

What is the NPV of installing the machinery?