The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $50. The unit cost of the giftware is $30.

Year Unit Sales: Year 1: 31,000 Year 2: 39,000 Year 3: 13,000 Year 4: 7,000 Thereafter 0

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 .20 31,000 $50 = $310,000. Plant and equipment necessary to establish the Giftware business will require an additional investment of $209,000. This investment will be depreciated using MACRS and a 3-year life. After 4 years, the equipment will have an economic and book value of zero. The firms tax rate is 40%. What is the net present value of the project? The discount rate is 14%.