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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 $74.000 per year for 7 years. At the beginning of the project, inventory will decrease by $6,500, accounts receivables will increase by $17,200, and accounts payable will increase by $16,900. At the end of the project, net working capital will retum to the level it was prior to undertaking the new project The intial cost of the molding machine is $256.600. The equipment will be depreciated straight-ine fo a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $44,200. What is the net present value of this project given a required retum of 11.8 percent

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