Fidsound has developed a new high-performance videotape. The manager's expectations appear below.

Annual volume 60,000 units for 4 yrs

Selling price $9

Unit variable cost $4

Cost of required machinery $300,000

Annual cash fixed costs $140,000

Increase in receivables $80,000

Increase in inventory $20,000

The increase in working capital will be returned in full at the end of the four years. The tax rate is 40% and cost of capital is 12%.

Required:

Determine the NPV of the investment.