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Jasper Metals is considering installing a new molding machine which is expected to produce operating...

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Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $64.000 per year for 8 years. At the beginning of the project, inventory will decrease by $23,200, accounts receivables will increase by $24, 600, and accounts payable will increase by $17,700. At the end of the project, net working capital will return to thelevel it was prior to undertaking the new project. The initial cost of the molding machine is $276.000. The equipment will be depreciated straight line to a zero book value over the line of the project. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $66,000 What is the net present value of this project gven a required retum of 10.9 percent

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