Davidson Installers wants to purchase $$1,253,400$ of new equipment in order to lower annual operating costs by $$404,000.$ The

equipment will be depreciated straight$-$line to a zero book value over its $5-$year life, and then sold for $$106,200.$ The company

must hold an extra $$224,200$ of inventory during the project. The company has a target debt$-$equity ratio of $0\mathrm{.}72.$ Their cost of

equity is $16\mathrm{.}0,$ and the pretax cost of debt is $7\mathrm{.}2.$ Assume a $21$ percent tax rate.

Calculate the project's NPV$.$

WACC$=\%$

$NPV=$$