Declaring a string scalarABC Corporation has hired you to evaluate a new FOUR year project for the firm. The project will require the purchase

of a $$783,600\mathrm{.}00$ work cell. Further, it will cost the firm $$52,200\mathrm{.}00$ to get the work cell delivered and installed. The work

cell will be straight$-$line depreciated to zero with a $20-$year useful life. The project will require new employees to be

trained at a cost of $$64,700\mathrm{.}00.$ The project will also use a piece of equipment the firm already owns. The equipment

has been fully depreciated, but has a market value of $$6,900\mathrm{.}00.$ Finally, the firm will invest $$11,700\mathrm{.}00$ in net working

capital to ensure the project has sufficient resources to be successful.

The project will generate annual sales of $$913,000\mathrm{.}00$ with expenses estimated at $38\mathrm{.}00\%$ of sales. Net working capital

will be held constant throughout the project. The tax rate is $40\mathrm{.}00\%.$

The work cell is estimated to have a market value of $$465,000\mathrm{.}00$ at the end of the fourth year. The firm expects to

reclaim $80\mathrm{.}00\%$ of the final NWC position.

The cost of capital is $15\mathrm{.}00\%.$

What is the NPV the project if we end the project after $4$ years?

HERE ON $($DOWN$)$ IS THE HELP EXAMPLE I GET WITH THE PROBLEM BUT IS NOT USEFUL FOR YEAR $1,2,3,4.$

Answer format: Currency: Round to: $2$ decimal places.

ABC Corporation has hired you to evaluate a new FOUR year project for the firm. The project will require the purchase

of a $$750,000$ work cell. Further, it will cost the firm $$50,000$ to get the work cell delivered and installed. The work cell

will be straight$-$line depreciated to zero with a $20-$year useful life. The project will require new employees to be trained at

a cost of $$60,000.$ The project will also use a piece of equipment the firm already owns. The equipment has been fully

depreciated, but has a market value of $$5,000.$ Finally, the firm will invest $$10,000$ in net working capital to ensure the

project has sufficient resources to be successful. The tax rate facing the firm is $40\%.$

The project will generate annual sales of $$900,000$ with expenses estimated at $40\%$ of sales. Net working capital will be

held constant at $$10,000$ throughout the project. The tax rate is $40\%.$

The work cell is estimated to have a market value of $$500,000$ at the end of the fourth year. Further, the firm expects to

reclaim $80\%$ of the final NWC position for the project.

The cost of capital is $12\%.$

If the cost of capital is $12\%,$ what is the NPV the project if we end the project after $4$ years?

$NPV=\frac{FC{F}_1}{(1+r{)}^1}+\frac{FC{F}_2}{(1+r{)}^2}+$cdots$+\frac{FC{F}_4}{(1+r{)}^4}+FC{F}_0$

Where:

$FC{F}_4=$$$340,000+TC{F}_4=$$$340,000+$$$564,000=$$$904,000$

$NPV=\frac{\text{\$}340,000}{(1\mathrm{.}12{)}^1}+\frac{\text{\$}340,000}{(1\mathrm{.}12{)}^2}+$cdots$+\frac{\text{\$}904,000}{(1\mathrm{.}12{)}^4}-$$$849,000=$$$542,130\mathrm{.}97$

USING FINANCIAL CALCULATOR:

$CF0=-849000,C01=340000,F01=3,C02=904000,I=12,CPTNPV=542130\mathrm{.}97$