Given the following information:

As the finance manager of a company, you are presented with the following project. The company is considering the purchase of a new piece of equipment which would cost $210,000. This equipment will have a five-year useful life and have a salvage value of $10,000 at the end of the five-year period. Assume straight-line depreciation It is estimated that

the new equipment will be able to produce 10,000 shelves per year.

the allocated overhead for running the equipment will be $20,000 per year.

they can sell the shelves for $25 each.

the cost of sales is $15 per shelf.

Net Working Capital requirements for the project are as follows:

Year 0 = $10,000

Year 1 = $15,000

Year 2 = $17,000

Year 3 = $15,000

Year 4 = $10,000

The company has a 30% marginal tax rate and a required rate of return of 15%.

Question: You estimate that sales will decrease by 500 units per year as long as the new line of shelves is in production. What is the new NPV?