Problem:
Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $817,822, $863,275, $937,250, $1,019,610, $1,212,960, and $1,225,000 over the next six years.
Required:
Question: If the appropriate discount rate is 15 percent, what is the NPV of this investment?
Note: Please show how to work it out.