Bob has just completed the development of a better face shield for health workers. The new product is expected to produce annual revenues of $60,000. Bob requires an investment in an advanced 3D Printer costing $15,000 The project has an expected life of 5 years based upon the development and dissemination of a vaccine for coronavirus. The 3D printer will have $3000 salvage value as the market for 3D printers will be flooded as demand plummets for face shields. In order to produce the face shields Bob must maintain a large inventory of plastic pellets. Therefore, working capital is expected to increase by $100,000. However, Bob will only recover 5% of the working capital at the end of the products life cycle. Annual operating expenses are estimated at $20,000. The required rate of return is 12%.

Calculate the Net Present Value