ABC is considering the purchase of new equipment for $103,000. The equipment is to be depreciated using the 5 year MACRS schedule, which is shown below. ABC plans to sell the equipment at the end of four years and projects that the equipment's market value at that time will be $27,000. The equipment is expected to generate an operating profit before taxes and depreciation of $27,000. Net working capital of $12,000 will be needed when the equipment is purchased, but will be recovered after the equipment is sold. The company's tax rate is 40 percent and its cost of capital for this project is 14 percent. What is the net present value of this project? MACRS Schedules For Yearly Depreciation Year 3 Year 5 Year 10 Year 1 33% 20% 10% 2 45% 32% 18% 3 15% 19% 14% 4 7% 12% 12% 5 11% 9% 6 6% 7% 7 7% 8 7% 9 7% 10 6% 11 3%