Atter spending $10,900 on client development, you have just been offered a big production contract by a new client. The contract will add 5202.000 to your revenues for each of the hext fivo years and it will cost you 5104,000 por year to make the addtional product You will have to use some existing equipment and buy new equipment as well. The existing equlpment is fully depreciated but could be sold for 549,000 now. If you use it in the project it will be worthless at the end of the project You will buy new equipment valued at 527.000 and use the 5yyear MACPS schedule to depreciate it ta will be worthless at the end of the project Your current production manager earns 576 , 000 pes year Since she is busy with ongoing projects, you are planning to hive an assistant at 541,000 per year to help with the expanslon You will have to immediately increase your inventory from $20,000 to $30.000. It will retum to $20,000 at the end of the project Your company's tac rate is 21 s/ and your discount rate is 15 . 6%. What is the NPV of the contract? (Note Assume that bhe ogupment is put into use in year 1 .) Gross Profit - Annual Cost - Depreciation EBIT - Tax Incremental Earnings + Depreciation - Incremental Working Capital - Opportunity Cost - Capital Investment Incremental Free Cash Flow