14 Problem 9-34 Project Evaluation (L04) 10 The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is $20. points YearUnit Sales 1 34,000 2. 42,000 3 16,000 4 10,000 Thereafter eBook Print It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need an initial (Year 0) investment in working capital of 20 x 34,000 $40 = $272,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $212,000. This investment will be depreciated using MACRS and a 3-year life. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 21%. What is the net present value of the project? The discount rate is 20%. Use the MACRS depreciation schedule. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) References Net present value