Revenues in each of years 13 = $22,000 Year 0 initial investment = $42,000 Inventory level = $11,000 in year 1, $11,700 in year 2, and $6,000 in year 3 Production costs = $7,600 in each of years 13 Salvage value = $12,200 in year 4 Depreciation = 100% immediate bonus depreciation Tax rate = 21% Customers pay with a 6-month lag

If the cost of capital is 12%, what is the projects NPV? Assume that, if the project generates losses, those losses can be used to offset profits elsewhere in the business.