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Market Top Investors, Inc., is considering the purchase of a $365,000 computer with an economic life of four years. The computer will be fully depreciated over four years using the straight-line method, at which time it will be worth $114,000. The computer will replace two office employees whose combined annual salaries are $95,000. The machine will also immediately lower the firm’s required net working capital by $84,000. This amount of net working capital will need to be replaced once the machine is sold. The corporate tax rate is 24 percent. The appropriate discount rate is 9 percent. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Please help figure out where I am making a mistake:

Streight line Method depreciation: Accumulated Depreciation =
Cost of Asset/Economic Life |
|||||

Year | 0 | 1 | 2 | 3 | 4 |

Savings in annual cost before tax) | $95,000 | $95,000 | $95,000 | $95,000 | |

Depreciation Exense | ($91,250) | ($91,250) | ($91,250) | ($91,250) | |

Net Savings before tax | $3,750 | $3,750 | $3,750 | $3,750 | |

Less Tax | $2,850 | $2,850 | $2,850 | $2,850 | |

After Tax Savings | $900 | $900 | $900 | $900 | |

Initial Investemetn | ($365,000) | ||||

After Tax Salvage Value | $ 86,640.00 | ||||

Working Capital | $84,000 | ($84,000) | |||

Add back depreciation expense | $91,250 | $91,250 | $91,250 | $91,250 | |

Net Cash Flow | ($281,000) | $ 92,150.00 | $92,150 | $92,150 | $94,790 |

PV Factor @9% | 1 | 0.917431193 | 0.841679993 | 0.77218348 | 0.77218348 |

PV | ($281,000) | $ 84,541.28 | $77,560.81 | $71,156.71 | $73,195.27 |

NPV | $25,454.08 |

Time line | 0 | 1 | 2 | 3 | 4 | ||

Cost of new machine | -365000 | ||||||

Initial working capital | 84000 | ||||||

=Initial Investment outlay | -281000 | ||||||

100.00% | |||||||

Savings | 95000 | 95000 | 95000 | 95000 | |||

-Depreciation | Cost of equipment/no. of years | -91250 | -91250 | -91250 | -91250 | 0 | |

=Pretax cash flows | 3750 | 3750 | 3750 | 3750 | |||

-taxes | =(Pretax cash flows)*(1-tax) | -900 | -900 | -900 | -900 | ||

+Depreciation | 91250 | 91250 | 91250 | 91250 | |||

=after tax operating cash flow |
94100 |
94100 |
94100 |
94100 |
|||

reversal of working capital | -84000 | ||||||

+Proceeds from sale of equipment after tax | =selling price* ( 1 -tax rate) | 86640 | |||||

+Tax shield on salvage book value | =Salvage value * tax rate | 0 | |||||

=Terminal year after tax cash flows | 2640 | ||||||

Total Cash flow for the period | -281000 | 94100 | 94100 | 94100 | 96740 | ||

Discount factor= | (1+discount rate)^corresponding period | 1 | 1.09 | 1.1881 | 1.295029 | 1.4115816 | |

Discounted CF= | Cashflow/discount factor | -281000 | 86330.27523 | 79202.087 | 72662.465 | 68533.055 | |

NPV= | Sum of discounted CF= | 25727.88 |

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Please show work
Market Top Investors, Inc., is considering the purchase of a
$340,000 computer with an economic life of five years. The computer
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method, at which time it will be worth $36,000. The computer will
replace two office employees whose combined annual salaries are
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required net working capital by $71,000. This amount of net working
capital will need to be...

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