A company is looking at a new sausage system with an installed cost of

$$500,000.$ This cost will be depreciated straight$-$line to zero over the project$$s five

$-$year life, at the end of which the sausage system can be scrapped for $$85,000.$

The sausage system will save the firm $$150,000$ per year in pretax operating

costs, and the system requires an initial investment in net working capital of

$$38,000.$ If the tax rate is $34\%$ and the discount rate is $8$ percent, what is the NPV

of the project?