A company is considering constructing a plant to manufacture a proposed new product. The land costs $300,000, the building costs $650,000, the equipment costs $250,000, and $150,000

additional working capital is required. It is expected that the product will result in sales of $900,000

per year for 11 years, at which time the land can be sold for $450,000, the building for $400,000, and the equipment for $40,000.

All of the working capital would be recovered at the EOY 11.

The annual expenses for labor, materials, and all other items are estimated to total $450,000.

If the company requires a MARR of 16% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.

The AW is $?