A company is considering a three-year investment project and will use a cost of capital of 10%p a . to evaluate it . The project will cost $ 180,000 upfront ( year O ) and the companys corporatetax rate is 30% . The project team has prepared the following incremental cash flow projectionsfor this project .

Calculate the projects net present value Show all calculations

Sales revenues Cost of goods sold (70% of revenues) Depreciation expense Change in net working capital Year 1 $400,000 $280,000 $60,000 +$15,000 Year 2 $400,000 $280,000 $60,000 +$15,000 Year 3 $400,000 $280,000 $60,000 -$30,000