1. The Lunch Counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. This expansion requires $28,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $2,800 of net working capital throughout the life of the project. What is the Cash flow for the last year of the project (note that the investment in the net working capital will be recovered at the end of the project).

a) What is the net present value of the project at a required rate of return of 14 percent? (round your answer to two decimal places).