Blanshan Company is considering the purchase of a computer-aided manufacturing system.The after-tax cash benefits/savings associated with the system are as follows: 
-The system will cost $9,000,000 and will last ten years.The company's cost of capital is 12 percent.
What is the NPV for the computer-aided manufacturing system?
Definitions:
Variable Costs
Costs that vary in proportion to the level of production or sales volume.
Profit Maximization
Achieving the highest possible profit through the management of production, pricing, and sales strategies.
Competitive Market
A market structure characterized by a large number of buyers and sellers, where no single participant can significantly influence the price or terms of products.
Production Costs
The total expenses involved in manufacturing a product, including raw materials, labor, and overhead.
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