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?

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

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