Mer spending $9,700 on dient-development, you have just been offered a big production contract by a new client. The contract wil add $197,000 to your revenues for each of the next five years and t will cost you $96,000 per year to make the additionat product. You wit have to use some existing equipment and buy new equipment as wet. The existing equipment is fulfy depreciated, but could sold for $52.000 now. If you use it in the project, it wil be worthless at the end of the project. You will buy new equipment valued at $34,000 and use the 5 -year MACRS schedule to depreciate it. If ill be worthless at the end of the project. Your current production manager earns $50,000 per year. Since she is busy with ongoing projects, you are planning to hire an assistant at $36,000 per year help with the expansion. You wit have to immediately increase your inventory from $20,000 io $30,000. It will rotum to $20,000 at the end of the project. Your compary/s tax rate is 21% and your iscount rate is 14.2%. What is the NPV of the contract? (Note: Assume that the equipment is put into use in yoar 1 ) alculate the free cash fows below for vears 0 throuah 2 . (Round to the nearnst dollar)