The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $50. The unit cost of the giftware is $40. Year Unit Sales 1 35,000 2 38,000 3 12,000 4 6,000 0 Thereafter It is expected that net working capital will amount to 10% of sales in the following year. For example, the store will need an initial (Year O) investment in working capital of 10 x 35,000 x $50 = $175,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $213,000. 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 firm's tax rate is 21%. What is the net present value of the project? The discount rate is 10%. Use the MACRS depreciation schedule. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Net present value Year(s) 15 Year 20 Year 5.00 3.75 9.50 7.22 8.55 6.68 7.70 6.18 6.93 5.71 6.23 5.28 5.90 4.89 5.90 4.52 5.91 4.46 5.90 4.46 5.91 4.46 5.90 4.46 5.91 4.46 5.90 4.46 5.91 4.46 2.95 4.46 4.46 2.23 Notes: 1. Tax depreciation is lower in the first year because assets are assumed to be in service for 6 months. 2. Real property is depreciated straight-line over 27.5 years for residential property and 39 years for nonresidential property. 1234567 8 9 10 112 13 14 15 16 3 Year 33.33 44.45 14.81 7.41 17-20 21 Recovery Period Class 7 Year 10 Year 14.29 10.00 24.49 18.00 17.49 14.40 12.49 11.52 8.93 9.22 8.92 7.37 8.93 6.55 4.46 6.55 6.56 6.55 3.28 5 Year 20.00 32.00 19.20 11.52 11.52 5.76