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RocketOwl, Inc. is considering a new product to bring to market. They estimate the product would have a viable market for five years. If they

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RocketOwl, Inc. is considering a new product to bring to market. They estimate the product would have a viable market for five years. If they wish to do the project they will need to purchase equipment with a price of \\( \\$ 2,032,211 \\). The firm will use straight-line depreciation to a value of \\( \\$ 500,000 \\) and assume the equipment will have a pre-tax salvage value of \\( \\$ 367,993 \\). They estimate revenue and costs for the project as presented in the table: RocketOwI, Inc. expects the project will need initial inventory for the project of \\( \\$ 106,907 \\), and this amount will stay constant throughout the project. They also expect in the investment year the project will generate accounts receivable of \\( \\$ 65,332 \\) and accounts payable of \\( \\$ 36,410 \\). They also assume that the project will generate accounts payable each year equal to 0.16 of annual sales and accounts payable equal to 0.06 of annual costs. The firm's average tax rate is 0.35 . If the firm's WACC is equal to \12.74, what is the NPV of the project? (Make sure you enter the number with the appropriate \\( +/ \\) - sign) RocketOwl, Inc. is considering a new product to bring to market. They estimate the product would have a viable market for five years. If they wish to do the project they will need to purchase equipment with a price of \\( \\$ 2,032,211 \\). The firm will use straight-line depreciation to a value of \\( \\$ 500,000 \\) and assume the equipment will have a pre-tax salvage value of \\( \\$ 367,993 \\). They estimate revenue and costs for the project as presented in the table: RocketOwI, Inc. expects the project will need initial inventory for the project of \\( \\$ 106,907 \\), and this amount will stay constant throughout the project. They also expect in the investment year the project will generate accounts receivable of \\( \\$ 65,332 \\) and accounts payable of \\( \\$ 36,410 \\). They also assume that the project will generate accounts payable each year equal to 0.16 of annual sales and accounts payable equal to 0.06 of annual costs. The firm's average tax rate is 0.35 . If the firm's WACC is equal to \12.74, what is the NPV of the project? (Make sure you enter the number with the appropriate \\( +/ \\) - sign)

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