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Adam Andler Corp is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should

Adam Andler Corp is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC or cost of capital 15.00%
Net investment cost (depreciable basis) $250,000
The salvage value of its equipment $20,000
No other fixed assets will be acquired for following years
The company will require an increase in net working capital at the beginning $10,000
The company will liquidate all working capital at the end of the project -10,000
Units sold (constant through years) 60,000
Average price per unit, Year 1 $30.00
Fixed operating cost, exclude depreciation (constant through years) $50,000
Variable operating cost per unit, Year 1 $17.00
Variable operating cost and average price per unit increase every year at inflation rate
MARCS 3-year depreciation rate:
Depreciation rate for year 1 33.33%
Depreciation rate for year 2 44.45%
Depreciation rate for year 3 14.81%
Depreciation rate for year 4 7.41%
Expected inflation rate per year 5.00%
Tax rate 35.00%

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