Assume you have a 3 year project where you project sales to be 1,500,00.00 in the first year and growing 10% each year. You project cost of goods sold to be 60% of sales, and operating expenses to be 15% of sales plus depreciation. Your company tax rate is 21%.

You will have capital costs of 1,400,000.00(depreciated to zero over the life of the project) and working capital of 300,000.00. You project you will have salvage value of 320,000.00.

Your company does not have any preferred stock, the companys bonds are currently yielding 5.5% in the market. The company has a beta of 1.3, The t-bill rate is 2.3%. The overall market risk rate is 7.4%.

What is the NPV of this project?