Answer:
($65,118)
Explanation:
The computation of net present value is shown below:-
Machine cost = $320,000
Savings yearly = $62,000
Periods yearly = 6
PVIFA for 12% and 6 years = 4.111
Present value of cash inflows = Savings yearly × PVIFA for 12% and 6 years
= $62,000 × 4.111
= $254,882
Net present value = Present value of cash inflows - Investment
= $254,882 - $320,000
= ($65,118)