Kuzzins Fertilizer Inc. is considering buying a machine to produce its new product, the Smelly Spreader. The machine has a 3-year life and a cost of $425,000. This total does not include marketing study costs of $25,000 expensed four months ago. The project will produce sales of $364,000 for each of the 3 years. Cost of the materials and all operations-related expenses to make the final product will be $183,000 each year. The equipment is depreciated over the life of the project using the straight-line method. The spreader has a market value of $42,000 in year 3. The tax rate is 30%. The project will immediately require $20,000 in extra inventory for spare parts and accessories. The firm's WACC is 7.8%, and its cost of debt is 6%. The firm may have to issue debt to finance this project.

Determine the cash flows for each year of the project, including year 0.

Calculate the net present value of the project.

Is the project feasible?