1. A firm has undertaken a feasibility study to evaluate a project that has the following estimated cashflows:

Increased sales to business of $140,000 for the next 5 years (starting in one year's time)

Increased costs of $20,000 for the next two years (starting in one year's time) 

The initial capital expenditure required is $100,000.

The study cost $10,000 to conduct.

-Amount borrowed to fund project is $200,000 with interest of 8% pa paid yearly. 

If the firm is facing a discount rate of 10%, what is the NPV of this project?