Dickinson Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of...

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Dickinson Brothers, Inc., is considering investing in a machineto produce computer keyboards. The price of the machine will be$1,700,000, and its economic life is five years. The machine willbe fully depreciated by the straight-line method. The machine willproduce 27,000 keyboards each year. The price of each keyboard willbe $59 in the first year and will increase by 4 percent per year.The production cost per keyboard will be $26 in the first year andwill increase by 5 percent per year. The project will have anannual fixed cost of $285,000 and require an immediate investmentof $250,000 in net working capital. The corporate tax rate for thecompany is 25 percent. The appropriate discount rate is 9percent.

What is the NPV of the investment? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

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Dickinson Brothers, Inc., is considering investing in a machineto produce computer keyboards. The price of the machine will be$1,700,000, and its economic life is five years. The machine willbe fully depreciated by the straight-line method. The machine willproduce 27,000 keyboards each year. The price of each keyboard willbe $59 in the first year and will increase by 4 percent per year.The production cost per keyboard will be $26 in the first year andwill increase by 5 percent per year. The project will have anannual fixed cost of $285,000 and require an immediate investmentof $250,000 in net working capital. The corporate tax rate for thecompany is 25 percent. The appropriate discount rate is 9percent. What is the NPV of the investment? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)