Sony International has an investment opportunity to produce a new stereo HDTV, the required investment on January 1 of this year is $190 million. The firm will depreciate the investment to zero using the straight-line method over four year. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $535 per unit, in real terms, and will not change over the life of the project. Labor costs for year 1 will be $15.85 per hours, in real terms, and will increase at 2 percent per year in real terms. Energy costs for year 1 will be $4.20 per physical unit, in real terms, and will increase at 3 percent per year in real terms. the inflation rate is 5 percent per year. revenues are recevied and costs are paid at year end. refer to the following table for production schedule

Physical production in units - year 1 155,000 year 2 165,000 year 3 185,000 year 4 175,000

Labor input, in hours - year 1 1,160,000 year 2 1,240,000 year 3 1,400,000 year 4 1,320,000

energy input, in phsyical units - year 1 250,000 year 2 270,000 year 3 290,000 year 4 275,000

The real discount rate for the company is 4 percent

calculate the NPV of this project