Ayayai Inc. is considering a project that would have a five-year life and require a $348,000 investment in equipment. The project will release working capital of $21,400 at the beginning of the project. At the end of five years, the project would terminate, the equipment would have $21,800 residual value, and the working capital will be increased by $21,800. The project would provide net income each year as follows:

Sales		$515,000
Less: Variable Expenses		$220,700
Contribution Margin		$294,300
Less: Fixed Expense		$245,700
Net Income		$48,600

All of the above items, except for depreciation, represent cash flows. The depreciation is included in the fixed expenses. Ayayais required rate of return is 11%, and the payback period is 2.7 years.

(a) What is the projects net present value?