Mills Mining is considering an expansion project. The proposed project has the following features - The project has an initial cost of $500,000--this is also the amount which can be depreciated using the following depreciation schedule:

Year 1 Depreciation Rate 33% Year 2 Depreciation Rate 45% Year 3 Depreciation Rate 15% Year 4 Depreciation Rate 7%

If the project is undertaken, at t = 0 the company will need to increase its inventories by $50,000, and its accounts payable will rise by $10,000. This net operating working capital will be recovered at the end of the project's life (t = 4).The company's tax rate is 40 percent. At t = 4, the project's economic life is complete, but it will have a salvage value of $50,000. The project's WACC = 10 percent. What is the project's net present value (NPV) and how can this be solved using Excel?