The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in

land and equipment will be $$120,000.$ Of this amount, $$70,000$ 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 $$50,000.$

The depreciated assets will have zero resale value. Use Table $12-12.$ Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

The contract will require an additional investment of $$55,000$ 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 $$50,000$ in income before depreciation and taxes for each of the six years. The corporation is in a $25$

percent tax bracket and has a $10$ percent cost of capital.

a$.$ Calculate the net present value.

Note: Do not round intermediate calculations and round your final answer to $2$ decimal places.