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The new system will be priced to sell at $ 4 3 0 each.The cockroach eradicator project will require $ 2 , 1 0 0

The new system will be priced to sell at $430 each.The cockroach eradicator project will require $2,100,000 in net working capital to start, and total net working capital will rise to 15% of the change in sales. The variable cost per unit is $300, and total fixed costs are $1,600,000 per year. The equipment necessary to begin production will cost a total of $18 million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost.The relevant tax rate is 35%, and the required return is 14%. Based on these preliminary estimates, what is the NPV of the project? (Enter the answer in dollars.Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)NPV$

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