Dublin Chips is a mnaufacturer of silicon wafer chips with applications in consumer electronic products. Next year, Dublin expects to deliver 650,000 chips at an average price of $98.00 per chip. The VP of marketing expects sales to grow at 65,000 chips per year for the next three years. Current manufacturing capacity is 585,000 chips per year. In order to meet demand for the next five years, Dublin will have to purchase new equipment at a cost of $25,800,000. The estimated disposal value of the equipment is $4,500,000. The company uses straight line depreciation for tax purposes and depreciates equipment to zero book value over its estimated useful life. The annual variable manufacturing costs for chips using this equipment are $73.00 per chip. Fixed manufacturing costs are $5,500,000 per year. The cost of capital for projects with this risk profile is 14.4%. The income tax rate is 35%. What is the NPV of this project? acquisition cost of equipment $25,800,000 selling price per chip $98.00 estimated disposal value $4,500,000 variable manufacturing cost per chip $73.00 next years sales volume 650,000 income tax rate 35.0% 65,000 cost of capital 14.4% annual growth (#chips) fixed manufacturing costs $5,500,000 estimated useful life 3 depreciation $8,600,000