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The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $ 4 0 . The unit cost of the giftware is

The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is
$25.
It is expected that net working capital will amount to 20% of sales in the following year. For example, the store will need an
initial (Year 0) investment in working capital of 0.2022,000$40=$176,000. Plant and equipment necessary to establish
the giftware business will require an additional investment of $200,000. This investment will be depreciated straight-line over
3 years. The firm's tax rate is 30%. The discount rate is 20%.
a. What is the net present value of the project?
Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.
b. By how much does NPV increase if the firm takes immediate 100% bonus depreciation?
a. Net present value
b. Increase in NPV
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