Mattice Corporation is considering investing $600,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $20,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $150,000. The salvage value of the assets used in the project would be $30,000. The company uses a discount rate of 18%. (Ignore income taxes.)

Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using the tables provided.

Required:

Compute the net present value of the project.