Rain in Spain (RiS) is a manufacturer of high quality raincoats. Currently, the retail price of each raincoat is $75 and is produced at a cost of $40. This past year, they sold 42,000 raincoats and they expect this Page: 2 File: Practice Quiz 04 (M8M9C3) - Applications with Cash Flows.txt number to grow by 6.5% each year for the next 13 years. The operations team at RiS recently brought to your attention a new technology that could lower the cost of production. This technology requires an upfront fixed investment of $2,050,000 and has the capacity to produce up to 97,000 raincoats per year at a 8.5% lower cost per unit. There is no increased working capital need due to this new technology, and no value of the machine/technology after 13 years. What is the NPV of investing in the new technology? Ignore taxes and assume a discount rate of 9.0%.