Plastic division has an expansion opportunity that costs $600,000,$ with a residual value of $40,000$ and a useful life of $5$ years. Assume Straight Line depreciation for accrual purposes and MACRS for taxes $($finished plastic product mold, use Pub $946$ and the half year convention$).$ The cost of capital $($minimum required return$)$ is $12$ percent and the effective tax rate is $25$ percent. The annual sales increase due to this project is $320,000$ with $90$ percent in cash for the year and a contribution margin ratio of $50$ percent. The increase in working capital is $8,000$ dollars, which will be fully returned at the end of the useful life of the project. Their marginal tax rate is $21$ percent.

Find the NPV of project cash flows WITHOUT the effect of income taxes.

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