What is npv of project and is it worthwhile to buy item

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Considering purchasing of 360000 items with life of 5 years. Will depreciate over five years using straight line method. Market value of item will be 60000 in five years the item will replace five office employees whose combined annual salaries are 105000. The machine will lower the firm’s net working capital by 80000.  This amount of net working capital will need to be replaced once it is sold. The corporate tax rate is 34 percent. Discount rate is 12 percent. What is npv of project and is it worthwhile to buy item.

Reference no: EM131020244

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