Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $$23,957$ and it will be depreciated according to the three$-$year MACRS schedule. The project also requires an initial increase in net working capital of $$300.$ Financial projections for sales and costs are in the table below. In addition, since sales are expected to fluctuate, NWC requirements will also fluctuate. The end$-$of$-$year NWC requirements are included below $($hint: these NWC capital requirements DO NOT represent the change in NWC for the period$).$ The $$0$ requirement for NWC at the end of year $4$ means that all NWC is recovered by the end of the project. The corporate tax rate is $35\%$ and the required return on the project is $12\%.$

Year

$1$

$2$

$3$

$4$

Sales

$$11,653$

$$12,746$

$$13,973$

$$10,638$

Costs

$2,322$

$2,536$

$3,456$

$1,434$

NWC Requirements

$324$

$352$

$231$

$0$