1 You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. Th growing quickly. The company bought some land three years ago for $1.33 million in anticipation of using it as a tox has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes i $1.43 million on an aftertax basis. In four years, the land could be sold for $1.53 million after taxes. The company alsc to analyze the zither market, at a cost of $118,000. An excerpt of the marketing report is as follows: The zither industry will have a rapid expansion in the next four years. With the brand name recognition that PUTZ brin the company will be able to sell 3,100, 4,000, 4,600, and 3,500 units each year for the next four years, respectively the name recognition of PUTZ, we feel that a premium price of $580 can be charged for each zither. Because zithers feel at the end of the four-year period, sales should be discontinued. PUTZ believes that fixed costs for the project will be $390,000 per year, and variable costs are 20 percent of necessary for production will cost $2.8 million and will be depreciated according to a three-year MACRS schedule. At the equipment can be scrapped for $365,000. Networking capital of $118,000 will be required immediately. PUTZ ha: and the required return on the project is 12 percent. MACRS Schedule What is the NPV of the project? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Do nc calculations and round your answer to 2 decimal places, e.g., 32.16.) m t