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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 0.20\times 22,000\times $ 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?

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