Jake's Real Estate is considering offering a new product. This product requires an investment of $136,000 in new fixed assets and $26,150 in net working capital, all of which is recoverable at the end of the project. The fixed assets will be depreciated straight-line to zero over the 5-year life of the project. The company spent $10,000 to hire a consult to estimate the potential costs and revenue associated with this project. The consultant projects the product will produce annual sales of $98,700 with annual costs of $58,500. At the end of the project, the company should be able to sell the fixed assets for $26,200. The company's tax rate is 21 percent.

What is the project's operating cash flow?

OCF =

Identify the cash flows at the start and end of the project:

Start =

End =

What is the project's net present value? (Round the WACC to two decimal places before using, i.e. XX.XX%)

NPV =