PERIOD	0	1	2	3	4
EBIT		$16,000	$54,000	$125,000	$172,500

SHOW WORK

The above table illustrates earnings before interest and taxes for a capital investment project. Additional information for this project:

• initial cost of the investment = $300,000
• change in net working capital = $15,000 (fully recoverable by end of the project)
• tax rate = 28.5%
• depreciation = straight line over four years
• projected cash flow from salvage = $100,000
• projected erosion costs = $12,000 in Year 1 and $8,500 in Year 2

If the WACC is 9.8%, what is the net present value of this project?