CHAPTER $6)$

investment decision

Should a company start a multi$-$year investment project? Here's what's known:

The return required for this project is $7\mathrm{.}4\%$ per year. $$280,000$ would need to be invested right away to buy all necessary production equipment. This project is expected to end at the end of Year $4,$ and at that time all production equipment will be sold and generate a cash inflow of $$113,000$ in after$-$tax salvage value. To meet any unforeseen equipment maintenance and repair expenses, $$45,000$ of cash would be set aside at the start of the project. It will then be increased by $$6,000$ each year. The cash balance will then be recovered at the end of the project's life. $$71,000$ in after$-$tax profits $($i$.$e$.,$ operating cash flow$)$ is estimated for each future year of the project.

The project's Net Present Value equals $$\_\_\_\_\_\_\_.$

Increase decimal places for any intermediate calculations, from the default $2$ to $6$ or higher. Only round your final answer to TWO decimal places: for example, $10,000\mathrm{.}23.$

Do NOT use $"$$$"$ in your answer.

If your answer is negative, don't forget the MINUS sign!