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he Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 2 3 percent.

he Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 23 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.
Year 0 Year 1 Year 2 Year 3 Year 4
Investment $ 27,100
Sales revenue $ 14,200 $ 15,800 $ 17,200 $ 13,700
Operating costs 3,3003,3005,0003,600
Depreciation 6,7756,7756,7756,775
Net working capital spending 340240305190?
a.
Suppose the appropriate discount rate is 12 percent. What is the NPV of the project?

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