The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $$150,000.$ Of this amount, $$120,000$ is subject to five$-$year MACRS depreciation. The balance is in nondepreciable property. The contract covers six years; at the end of six years, the nondepreciable assets will be sold for $$30,000.$ The depreciated assets will have zero resale value. Use Table $12-12.$

The contract will require an additional investment of $$45,000$ in working capital at the beginning of the first year and, of this amount, $$25,000$ will be returned to the Spartan Technology Company after six years.

The investment will produce $$48,000$ in income before depreciation and taxes for each of the six years. The corporation is in a $25$ percent tax bracket and has a $11$ percent cost of capital.

a$.$ Calculate the net present value.