Burt Batteries Pty Limited is evaluating a project that will last for 5 years and will produce earnings before interest and tax and Depreciation & amortisation(EBITDA) of $240,000 in the first year. After year 1, EBITDA is expected to grow at 7% per year for the remaining four years.

It is expected that $250,000 of cash flow will be invested in new fixed assets. Depreciation will be straight-line over 5 years. The project assets will have a salvage value of $40,000 (before tax).

The company will borrow $150,000 at 8% per annum interest rate.

In addition the company will invest $100,000 in additional working capital on day 1 but will be able to recover this at the end of the project. The firm's corporate tax rate is 30%. What is the net present value (NPV) of the project if the required rate of return is 12% p.a.(Use Excel)