Oswego Industries is considering investing in a new project and has prepared the incremental earnings forecast and other information provided below:

	Year 0	Year 1	Year 2	Year 3
Revenue		$840,000	$840,000	$840,000
Cost of Goods Sold		−320,000	−320,000	−320,000

Gross Profit		520,000	520,000	520,000
Selling, General, & Admin (SG&A)		−110,000	−110,000	−110,000
Depreciation		−180,000	−180,000	−180,000

EBIT		230,000	230,000	230,000
Income Tax (21%)		−48,300	−48,300	−48,300

Incremental Earnings		181,700	181,700	181,700
Capital Expenditures	540,000

In addition to the

$540,000

in capital expenditures, the project will require an immediate (T=0) increase in net working capital of

$13,000.

This level of NWC will be maintained for the life of the project and fully recovered at the end of Year 3.

Question A: If Oswego Industries uses a cost of capital of

14%,

what is the NPV of this project?