The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $$40.$ The unit cost of the glftware is $$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 Initlal $($Year

b$)$ Investment in working capital of $0\mathrm{.}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. After $4$ years, the

equipment will have an economic and book value of zero. The firm's tax rate Is $30\%.$ The discount rate is $20\%.$ Use the MACRS

depreciation schedule.

a$.$ What is the net present value of the project?

Note: Do not round Intermedlate 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?