Calculate the NINV of this upgrade project for the initial year (1st year), please provide step by step work.

tax rate: 40%

Estimation of the Net Investment Value (NINT) of the New PMS Upgrade: This upgrade project is going to give an opportunity to Hotel DelRay to replace the older PMS with the new technology so that the hotel can operate better to maximize their profit margins. Purchasing activities and processes of this new PMS technology will cost DelRay $57,000. In addition to the cost of the new asset, the old PMS technology can be sold for $10,000 in the market with a book value of $8,000. Hence, after-tax salvage value from the replaced assets is established based on the difference between market and book value of the old asset along with the effect of tax. Suppose that the new PMS technology will not cause DelRay to increase its net working capital. Further, additional charges and estimations for this new PMS technology for the initial year (1" year) are highlighted as follows: Additional Staffing & Delivery Cost: $16,000 Shipping, Installation and Insurance Cost: $4,000 Maintenance Cost: $2,000 Design, Build, and Implementation of the New Technology: $3,000