Question - The Whispering Winds Company is planning to purchase $458,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment:

Year                       Projected Cash Flows

1                              $215,000

2                              136,000

3                              105,000

4                              58,400

5                              61,900

6                              43,600

7                              46,600

Total                      $666,500

Calculate the net present value of the proposed equipment purchase. Whispering Winds uses a 13% discount rate.