A company will sell Thingamabobs to consumers at a price of $106 per unit. The variable cost to produce Thingamabobs is $42 per unit. The company expects to sell 13,000 Thingamabobs to consumers each year. The fixed costs incurred each year will be $180,000. There is an initial investment to produce the goods of $3,200,000 which will be depreciated straight line over the 15 year life of the investment to a salvage value of $0. The opportunity cost of capital is 8% and the tax rate is 37%.

a. Using the an annual operating cash flow of $489,693.33, what is the net present value of this investment?

b. should the company reject or accept the project?