Calculate the NPV of this project. (using MACRS method)

Equipment cost $45,000, Sales $40,000, Cost of goods sold $30,000, Gross profit $10,000, General, S&A $3,000, Depreciation $7,500 Net operating income -$500, Income tax $125, Net income -$375. Initial Investment = $10,000 (fully recovered end of year 6). Selling, general nad administrative expense = $3,000. Operating cost not recoverable= $1,000.

A 30-years treasury bond rate is 3%, the market risk premium is 8%.