A manufacturing company is considering the acquisition of a new machine at a cost of $100,000. Because of a rapid change in product mix, the need of this particular machine is expected to last only two years after which time the machine is expected to have a salvage value of $50,000. The annual operating cost is estimated to be $8,000. The addition of this machine to the current production facility is expected to generate annual revenue of $60,000. The firm has only $70,000 available from its equity funds, so it must borrow the additional $30,000 required at an interest rate of 12% per year with repayment of principal and interest in two equal annual amounts. The applicable marginal income tax rate for the firm is 40%. Assume that the asset qualifies for a seven-year MACRS property classification. What is the net present worth of this project at MARR=15%? (First, you should determine the annual after-tax cash flows)