Cash flows estimation and capital budgeting: You are the head of finance department in XYZ Company. You are considering adding a new machine to your production facility. The new machine's base price...

Extracted text: Cash flows estimation and capital budgeting: You are the head of finance department in XYZ Company. You are considering adding a new machine to your production facility. The new machine's base price is $10,300.00, and it would cost another $2,600.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after three years for $1.850.00. The machine would require an increase in net working capital (inventory) of $730.00. The new machine would not change revenues, but it is expected to save the firm $36,535.00 per year in before-tax operating costs, mainly labor. XYZ's marginal tax rate is 32.00%. If the project's cost of capital is 13.65%, what is the NPV of the project?