A company is considering launching a new product. It has ordered a feasibility study at a cost of $300,000 to investigate the consequences of the investment. The study yielded the following information. Expected sales for the next four years are the following:

Expected Sales for the next 4 Years

Year	Units Sold
1	63,000
2	70,000
3	78,000
4	60,000

The sales price of the new product is estimated at $200 per unit. The logistics department forecasts that net working capital requirements (NWC) will represent 20% of current year sales, and that NWC will be recovered in full in year 5. Variable costs per unit are estimated at $140, and there are annual fixed costs of $600,000 every year. Because of marketing synergies, the new product is expected to increase sales of existing products by $150,000 per year for the next 4 years.

This project requires an initial investment (machine) of $8 million that can be depreciated linearly over 8 years to zero book value. At the end of the project in year 4, the machine can be sold for 40% of the purchase price. Taxable income and capital gains are taxed at a fixed rate of 35%, and the required rate of return by investors is 16%. Compute the NPV of the project.