Mercer Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three years ago for $1.2 million and which it currently rents out for $140,000 (before tax). Rental rates are not expected to change going forward. In addition to using the warehouse, the project requires an up-front investment into machines and other equipment with the purchase price of $1.5m and shipping and handling fees of $20,000 .This investment can be fully depreciated straight-line over the next 10 years for tax purposes. However, Mercer Inc. expects to terminate the project at the end of 8 years and to sell the machines and equipment for $700,000. Finally, the project requires an immediately investment into net working capital equal to 15% of predicted first-year sales. Subsequently, net working capital each year is 15% of the predicted sales of the following year. Sales of protein bars are expected to be $2.2 million in the first year and increases by 5% per year until the end of the project. Total manufacturing costs and operating expenses (excluding depreciation) are 60% of sales of the same year, corporate tax rate is 40%. The company borrows $700,000 from a bank to finance the project. Annual interest is $60,000. The opportunity cost of capital is 10%. Calculate NPV of the project. Should the project be accepted