Given the following information about a possible average-risk, new product investment, calculate the investment's net present value.

Initial Cost $200,000 Expected Life 10yrs Salvage Value O Annual Depreciation $20,000 Incremental Annual Sales $200,000 Incremental Annual Production $110,000 Costs Incremental Annual Selling & $20,000 Admin Costs Tax Rate 50% Expected Inventory Turnover (calculated as production costs / 4 times ending inventory) Expected Collection Period 45 days Cost of Capital 8% Borrowing rate 7% Target Debt to Equity Ratio 130%