Peter Green is planning a new business operation. It will produce net cash flows of £80,000 per year for four years. The initial investment in fixed assets will cost £90,000. The business is located in an enterprise zone and so is entitled to claim a tax deduction up to 100% of the cost of the fixed assets. It is expected that the fixed assets will sell for £10,000 at the end of four years. The corporation tax rate is 20%. Corporation tax is payable 12 months after the relevant cash flows arise. The after-tax cost of capital is 6% per annum.

Required Calculate the net present value of the project.