Nathan Co. is considering replacing its production line used for corn? dogs-in-a-cup. The production line will generate? $1,300,000 in additional revenue per year for each of the next six years. Incremental annual operating costs are projected at? 60% of sales. The new production line equipment will cost? $1,500,000, and will be depreciated according to MACRS as a? five-year asset. The new fixed assets will have a market value of? $50,000 (before? taxes) at the end of six years. The existing production line is fully depreciated and can be sold as scrap for? $20,000 in? after-tax proceeds. Net working capital requirements are? $110,000 for the? six-year life of the? project; the outlay for working capital will be recovered at the end of six years. Nathan? Co.s tax rate is? 40%, and the required rate of return is? 15%.

What is the projected NPV for the new production line? project?