Problem 11. A project requires an initial investment of $41,000. After 3 years, the equipment will be sold for $4,000. The equipment will be depreciated on a MACRS3 year schedule. The new equipment will allow you to sell an additional 10,000 pounds of product per year for $1.40 per pound. The equipments expenses will be $900 per year. You expect the equipment to require the following amounts of working capital each year:

0	1	2	3
$4,000	$5,000	$2,000	$0

MACRS 3-year
1	33.33%
2	44.45%
3	14.81%
4	7.41%

The tax rate is 20% and the discount rate is 9%. Fill in the table below and find the NPV of the project.

	0	1	2	3
Investment required
Sales
Expenses
EBT
Change in NWC
Total Cash Flows

The NPV of the project is _____________________________________________________