A company will sell Thingamajigs to consumers at a price of $117 per unit. The variable cost to produce Thingamajigs is $47 per unit. The company expects to sell 17,000 Thingamajigs to consumers each year. The fixed costs incurred each year will be $200,000. There is an initial investment to produce the goods of $3,600,000 which will be depreciated straight line over the 20 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 36%.

Using the annual operating cash flow of above, what is the net present value of this investment?

Should the company accept or reject this project?