A company sells Tidbits to consumers at a price of $119 per unit. The cost to produce Tidbits is $35 per unit. The company will sell 15,000 Tidbits to consumers each year. The fixed costs incurred each year will be $200,000. There is an initial investment to produce the goods of $3,300,000 which will be depreciated straight line over the 18 year life of the investment to a salvage value of $0. The opportunity cost of capital is 8% and the tax rate is 39%.

What is operating cash flow each year?

: 718,1001

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Using an operating cash flow of 718,100 each year, what is the NPV of this project?

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