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	0
Annual Depreciation	$20,000
Incremental Annual Sales	$200,000
Incremental Annual Production Costs	$110,000
Incremental Annual Selling & Admin Costs	$20,000
Tax Rate	50%
Expected Inventory Turnover (calculated as production costs / ending inventory)	4 times
Expected Collection Period	45 days
Cost of Capital	8%
Borrowing rate	7%
Target Debt to Equity Ratio	130%

Hint: Assume the company is on a 360 day year. Networking capital investment is only necessary at the onset of the project (year 1), it is recalled in period 10.

PLEASE INCLUDE THE CALCUATIONS / SOLUTION TO THIS QUESTION IN Excel