Andronicus Corporation (AC) has the following jumbled information about an investment proposal: a. Revenues in each of years 14=$39,000 b. Year 0 initial investment =$59,000 c. Inventory level =$19,500 in year 1,$21,900 in year 2 , and $14,500 in year 3 d. Production costs =$12,700 in each of years 14 e. Salvage value =$13,900 in year 4 f. Depreciation =100% immediate bonus depreciation g. Tax rate =21% h. There is an additional 6-month lag for all cash flows after year 0. For example, customers pay consistently with a 6-month lag, as AC does for production costs, taxes, etc. Draw up a set of cash flow forecasts as in Table 6.4. If the cost of capital is 10%, what is the project's NPV? Assume that, if the project generates losses, those losses can be used to offset profits for tax purposes elsewhere in the business. Note: Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount. \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Panel A Capital Investment } & \multicolumn{8}{|c|}{ Period } \\ \hline & & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\ \hline 1 Investment in Fixed Assets & $12,000 & & & & & & & \\ \hline 2 Sale of Fixed Assets & & & & & & & & $1949 \\ \hline 3 Less Tax on Sale & & & & & & & & $409 \\ \hline 4 Cash Flow from Capital Investment (2+3+1) & $12,000 & & & & & & & $1540 \\ \hline \multicolumn{9}{|l|}{ Pane1 B Operating Cash Flow } \\ \hline 5 Revenues & & 523 & 12,887 & 32,610 & 48,901 & 35,834 & 19,717 & \\ \hline 6 Cost of Goods Sold & 4,000 & 3,037 & 8,939 & 20,883 & 30,809 & 23,103 & 13,602 & \\ \hline 7 Depreciation & 12,000 & & & & & & & \\ \hline 8 Pretax Profit & 16,000 & 2,514 & 3,948 & 11,727 & 18,092 & 12,731 & 6,115 & \\ \hline 9Tax & 3,360 & -528 & 829 & 2,463 & 3,799 & 2,674 & 1,284 & \\ \hline 10 Profit after Tax & 12,640 & 1,986 & 3,119 & 9,264 & 14,293 & 10,057 & 4,831 & \\ \hline 11 Operating Cash Flow & -640 & 1,986 & 3,119 & 9,264 & 14,293 & 10,057 & 4,831 & \\ \hline \multicolumn{9}{|l|}{ Panel C Investment in Working Capital } \\ \hline 12 Working Capital & & 550 & 1,289 & 3,261 & 4,890 & 3,583 & 2,002 & \\ \hline 13 Change in Working Capital & & 550 & 739 & 1,972 & 1,629 & 1,307 & 1,581 & 2,002 \\ \hline 14 Cash flow from investments in working capital (-13) & & -550 & -739 & 1,972 & 1,629 & 1,307 & 1,581 & 2,002 \\ \hline \multicolumn{9}{|l|}{ Pane1 D Project Valuation } \\ \hline 15 Total Project Cash Flow (4+11+14) & 12,640 & 2,536 & 2,380 & 7,292 & 12,664 & 11,364 & 6,412 & 3,542 \\ \hline 16 Discount Factor & 1.000 & 0.833 & 0.694 & 0.579 & 0.482 & 0.402 & 0.335 & 0.279 \\ \hline 17 Discounted Cash Flow (1617) & 12,640 & 2,113 & 1,653 & 4,220 & 6,107 & 4,567 & 2,147 & 988 \\ \hline 18NPV & 4,929 & & & & & & & \\ \hline \end{tabular}