PERIOD 0 - ?

1 - $46,000

2 - $57,000

3 - $70,000

4 - $80,000

EBIT - ?, $46,000, $57,000, $70,000, $80,000

The above table illustrates earnings before interest and taxes for a capital investment project.

Additional information for this project:

-initial cost of the investment = $600,000

-no change in net working capital

-tax rate = 32.0%

-depreciation = accelerated using the MACRS factors: 0.33330, 0.44450, 0.1481, 0.0741

-projected cash flow from salvage = $0

-projected erosion costs = $30,000 in Year 1 and $40,000 in Year 2

If the opportunity cost of capital is 11.2%, what is the net present value of this project?

Enter your answer as a regular dollar value, rounded to the nearest dollar. Do not enter dollar signs, percent signs, or commas. If this is a negative number, use a minus sign in front.

For example, if you calculated $49,201.94, you should enter 49202. Or if you calculated a decimal of ($129,611.37), you should enter -129611. Answers are counted correct with an error term of +/ 10.0.