9 Problem 10-35 Cash Flows and NPV (L02) We project unit sales for a new householduse laserguided cockroach search and destroy system as follows: Ye m r Unit Sales 102,000 114,000 137,000 143,000 96,000 I 10 points U'l-DUJNH eBook The new system will be priced to sell at $485 each. The cockroach eradicator project will require $1,600,000 in net working capital to start, and total net working capital will rise to 15% ofthe change in sales, The variable cost per unit is $355, and total fixed costs are $2,700,000 per year The equipment necessary to begin production will cost a total of $23 million. This equipment is mostly industrial machinery and thus qualies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost. The relevant tax rate is 35%, and the required return is 19%; Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV 35