A firm is considering expanding its current warehouse operations. The expansion will require

new automation system at an initial investment cost of $127000. It will be depreciated on a

straight-line method to a zero over the 4-year life of the project. At the end of project, the pretax

salvage value is estimated $63500. The project requires $7300 initially for net working capital

and it will be recouped at the end of the project. The projected operating cash flow is $101000

a year. What is the net present value of this project if the discount rate is 15 percent and the tax

rate is 35 percent?