A project has an initial equipment cost of $6,000. The project will go on for 2 years. The equipment cost will be depreciated straight line over the 2 years to $1,000 salvage value. Cash sales are expected to be $15,000 per year and costs of goods sold are 60% of sales. The appropriate discount rate is 12% and the corporate tax rate is 20%.

Calculate the project net present value? Should the project be accepted?