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A new electronic process monitor costs $870,000. This cost could be depreciated at 30% per year,...

A new electronic process monitor costs $870,000. This cost could be depreciated at 30% per year, (class 10). the monitor would actually be worth $95,000 in five years. The new monitor would save $465,000 per year before taxes and operating costs. Suppose the new monitor requires us to increase networking capital by $39,500 when we buy it. if we require a 12% return, what is the NPV of the purchase? assume a tax rate of 35%. (Dot not round intermediate calculations, round the final answer to 2 decimals.)

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Therefore, NPV of the Purchase is -$453,418.7

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