The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.

Year 0Year 1 Year2 Year 3 Year4

Investment $32,000

Sales Revenue $16,500 $17,000 $17,500 $14,500

Operating costs $3,500 $3,600 $3,700 $2,900

Depreciation 8,000 8,000 8,000 8,000

Net working capital spending380 430 480 380 ?

A. Compute the incremental net income of the investment for each year

Net Income Year 1Year 2 Year 3 Year 4

$4,500 $5,672 $6,783 $7,902

B. Compute the incremental cash flows of the investment for each year

Cash Flow Year 0Year 1 Year 2 Year 3 Year 4

$1,284 $2,348$3,458 $4,685 $5,654

C. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project?

NPV $9,531.35

Where am I going wrong?