Liberty Bell is a successful holding company with investments in several fields.
A new investment in video equipment with an initial outlay of $450,000 involves
a risk factor determined to be 25% higher than its present portfolio of
investments without presenting any diversification benefits. Revenue is projected
to be $150,000 per year for 5 years at which time another capital outlay on
equipment of $90,000 will be required. Expenses over this initial 5 year period
will be $35,000 per year. Beginning in the sixth year revenues will increase by
$50,000 a year, expenses increase by $10,000 and continue until year 10 when
the business will be sold. The equipment will be sold for $60,000 (no recapture,
capital gains, or terminal loss will be triggered). With a corporate tax rate of
47%, an overall cost of capital of 16% and a C.C.A rate on video equipment of
30%.

REQUIRED: Calculate the NPV of this investment proposal indicating whether or
not it should be accepted.

Just wondering if someone can give me a check figure for the answer.