Super Manufacturing Inc is considering launching a new product. In order to make the product, the company must purchase a new machine. Consider the following data:

• The company has already spent $175,000 on test marketing for the new product.

• The machine costs $1 million. The machine will have no salvage value at the end of the project.

• Taxes are 30%.

• The project is expected to last 10 years.

• Sales in year 1 will be 75,000 units. In years 2-10 sales will be 100,000 units.

• Revenue in year 1 is expected to be $10 per unit. Unit revenue will increase by 3% per year.

• Production costs are expected to be $6.50 per unit and are expected to increase at 5% per year.

• Other fixed costs are expected to be $90,000 per year, increasing at 2% per year.

 Compute the NPV of this project ignoring CCA. Use a discount rate of 10%.