1.8 Million plus 55K is sunk cost thus we do not include this in our calculations

Initial Costs

Cost of Machinery = $-2,500,000

Training Costs = $-85,000

Proceeds from sale of Old Machine = $260,000

Initial Cash Flow CF0 = $-2,325,000

Interim Cash Flows

$390,000 $400,000 $411,000 $426,000 $434,000 $435,000

Teminal Cash Flow = $436,000 + $380,000 = $816,000

Free Net Cash Flows are

-2325000 390000 400000 411000 426000 434000 435000 816000

Your Cost of Capital is 9%

NPV = $-23,547

The answer was arrived at using this online NPV Calculator

Yet if you need to show calculations, try this online NPV Calculation tool instead