Callaway Golf is preparing to introduce a new line of shoes, and they signed a contract with NIKE to design this shoe with the miniature Callaway Golf logo. Based on the information below, please calculate the net present value (NPV) of this project in year 0.

1) In year 0, Callaway will need to purchase a $5 million piece of equipment that will be depreciated in a straight line over five years (from year 1 to year 5).

2) The expected sales revenue for the first year is $15 million, and will be reduced by $3 million per year thereafter (the second year's sales revenue is $12 million, and so on, and the fifth year is $3 million)

3) Cost of sales accounts for 33.33% of sales revenue.

4) Inventory at the end of each year is half of the cost of sales for the following year. Inventories are measured by cost (inventories in year 0 are 1500*0.3333*0.5). The inventory at the end of the fifth year is 0.

5) There are no receivables and payables, so all changes in net working capital are derived from changes in inventory.

6) The tax rate is 25% and the discount rate is 10%.

7) Callaway promised to pay 20% of the sales revenue for the first year as a handling fee to NIKE (this fee is the fee to be paid in the first year)

8) The project ends at the end of the fifth year