A company will sell Thingamabobs to consumers at a price of $92 per unit. The variable costto produceThingamabobs is $34 per unit. The company expects to sell 20,000Thingamabobs toconsumers each year. The fixed costs incurred each year will be $250,000. There is an initial investment to produce the goods of $2,800,000 which will be depreciated straight line over the 5 year life of the investmentto a salvage value of $0. The opportunity cost of capital is 6% and the tax rate is 26%.

Using the an annual operating cash flow of $819,000, what is the net present value of this investment?

Should the company accept or reject this project?