In your new role as the Chief Financial Officer of Clean Water Solutions Co, it is your responsibility to oversee a new water filtration project that is expected to last the next 5 years. The company is considering investing in a new water filter for refrigerators that will be priced at $300 each, while variable costs for producing each filter are $155. Initial estimates suggest that the company will sell 150,000 units in the projects first year, and the number of units sold is expected to increase by 35,000 units annually. The selling price per unit is expected to decrease by $15 per year due to the release of newer versions. Variable costs per unit are also expected to decrease annually due to efficiency gains in the production process. Estimates suggest that variable costs will decrease by $10 per year.

Fixed costs for the project are expected to be $2 million per year. Moreover, the company will need to invest a total of $45 million in fixed assets. Clean Water Solutions Co. uses two forms of depreciation for its fixed assets. The company uses straight-line depreciation on its income statements, which assumes that the fixed assets are 100% depreciable. Meanwhile, the company uses the Modified Accelerated Cost Recovery System (MACRS) for tax purposes when determining the tax implications on the sale of its fixed assets. Assume that the fixed assets are classified as 7-year property under MACRS:

Depreciation Year	7-Year MACRS
1	14.29%
2	24.49%
3	17.49%
4	12.49%
5	8.93%
6	8.92%
7	8.93%
8	4.46%

At the end of the fifth year, the company anticipates that it will sell this equipment for $11 million before taxes. Assume that the company is in a 21% corporate tax bracket. The company will also require an additional investment of $4 million in net working capital, and 100% of this investment will be recovered at the end of year 5.

Assuming the minimum required return on this project is 18%, what is its net present value? Should the project be accepted or rejected based on the net present value?