the director of RCM inc. plans to launch a new product. The initial investment in equipment and other fittings is $$800,000.$ Management has been thinking about launching this new product for some time. They made several trips to different cities to understand the potential demand, and finally decided to launch the product. These trips have cost the company around $$50,000$ so far. The project will have an estimated lifespan of $5$ years. The first year's revenue is expected to be $$600,000,$ and revenue is expected to remain at this level for the duration of the project. Project operating costs are estimated at $$200,000$ per year. If the project is undertaken, the total investment in net working capital will increase by $$100,000$ at the start of the project, but the company will recover $50\%$ of its investment in net working capital at the end of year $5.$ The tax rate is $30\%,$ and the capital cost amortization rate is $20\%.$ The equipment can be sold at the end of the project for $$150,000.$ The appropriate discount rate for the project is $9\%.$ Calculate the NPV to see whether the company should undertake this project or not.