The Spartan Technology Company has a proposed contract with the Digital

Systems Company of Michigan. The initial investment in land and equipment will be

$$225,000.$ Of this amount, $$180,000$ 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 $$45,000.$ The

depreciated assets will have zero resale value. Use Table $12-12.$

The contract will require an additional investment of $$51,000$ in working capital at

the beginning of the first year and, of this amount, $$31,000$ will be returned to the

Spartan Technology Company after six years.

The investment will produce $$70,000$ in income before depreciation and taxes for

each of the six years. The corporation is in a $25$ percent tax bracket and has a $8$

percent cost of capital.

a$.$ Calculate the net present value. $($Do not round intermediate calculations and

round your answer to $2$ decimal places.$)$