3. Alexander Inc. is considering a project to manufacture food. The project will require the use of an existing warehouse, which the firm purchased four years ago for $2,000,000. Currently, Alexander rents the warehouse to another company; the rent is $120,000 per year (with rent paid at the end of the year). The rental charge is not expected to change in the future. In addition to the warehouse, the project will require an investment in machinery of $1,400,000. For tax purposes, this machinery can be depreciated straight line to zero over the next ten years. However, Alexander Inc. plans to end the project after eight years and to sell the equipment (also at the end of eight years) for $500,000. The project also requires an initial investment in working capital equal to 10% of the expected first-year sales. Going forward, working capital is estimated to be 10% of the next year's sales. Working capital will be fully recovered when the project ends after eight years. Sales of the baby food are expected to be $4,800,000 per year for each of the eight years of the project. Manufacturing costs (other than depreciation) are estimated to be 80% of sales Profits are taxed at 30%; the company's tax situation in such that it can take advantage of all tax deductions. If the opportunity cost of capital is 15+, what is the Net Present Value of the project? each year