The Anderson Airlines Group is analyzing a project that has projected incremental sales of $$1,600,000$per year and incremental costs of $$980,000$ per year. The project requires an initial upfront investment in net working capital $($NWC$)$ of $$25,000.$ No other investments in NWC are anticipated. Fixed assets of $$2,000,000$ are needed and belong in a $20\%$ CCA class. Assume that the asset class will remain open. The project has a life of five$(5)$years$.$At the end of the five years $,$the equipment has an estimated market value of $$780,000.$ The company has a cost of capital of $12\%$ and is in the $35\%$ marginal tax bracket. Assume that NWC will be recovered at the end of the project and that the half$-$year rule is in effect.

a$)$ What is the present value of the after tax operating cash flow ignoring the impact of depreciation?

b$)$ Pretend that your answer to the previous question is exactly $1,500,000.$what would the NPV of the project bet?