The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The unit cost of the giftware is $25.

Year	Unit Sales
1	25,000
2	45,000
3	29,000
4	5,000
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 25,000 $40 = $191,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $275,000. 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 firms tax rate is 30%. The discount rate is 20%. Use the MACRS depreciation schedule.

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

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 .2025,000$40=$191,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $275,000. 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 intermediate calculations. Round your answer to the nearest whole dollar amount. 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 .2025,000$40=$191,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $275,000. 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 intermediate calculations. Round your answer to the nearest whole dollar amount