Moscow Metals is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 a year for 7 years. At the beginning of the project, inventory will decrease...

Moscow Metals is considering installing a new molding machine which is expected to
produce operating cash flows of $73,000 a year for 7 years. At the beginning of the
project, inventory will decrease by $16,000, accounts receivables will increase by
$21,000, and accounts payable will increase by $15,000. All net working capital will be
recovered at the end of the project. The initial cost of the molding machine is $249,000.
The equipment will be depreciated straight-line to a zero book value over the life of the
project. The equipment will be salvaged at the end of the project creating a $48,000 aftertax cash flow. At the end of the project, net working capital will return to its normal level.
What is the net present value of this project given a required return of 14.5 percent?