There is a machine that costs $550 today (year 0). Assume that this investment is fully tax-deductible, as stipulated by new US corporate tax code of 2018.This company has current pre-tax profits...

There is a machine that costs $550 today (year 0). Assume that this investment is fully tax-deductible, as stipulated by new US corporate tax code of 2018.

This company has current pre-tax profits from other projects that are greater than $550, so it can take full advantage of investment tax break above in year 0.

This machine will generate operating profits before depreciation (EBITDA) of $260 per year for 5 years. The first cash flow happens one year after this machine is installed (year 1).

Depreciation is not tax-deductible. Notice that you do not need to calculate depreciation at all to solve this problem since it has no effect on taxes.

Tax rate is 21%

There is no salvage value at the end of the 5 years (the machine is worthless), and no required working capital investment.

Discount rate is 6.5%.

Compute the NPV of the project.

Show all calculations.

NPV = __________________________?