1. Company Z is evaluating a project that will increase annual sales by $150,000 and annual cash costs by $115,000. The project will initially require $98,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 32 percent. What is the NPV of this project if the required rate of return is 7% and the fixed assets required for the project will be scrapped at the end of the project?