Today is Year 0. Sales will begin in Year 1 and continue forever.

- Each year the company will make 60 Aussie Kid dolls.

- Cost of goods sold will be $45 for each product.

- Gross profit margin will be 40%.

- Year-0 CAPEX of $900 will be required. It will be straight-line depreciated in Years 1 and 2.

- Annual overhead (e.g., rent, salaries, administrative expenses) begins in Year 1 and will be $250 per year.

- A one-time legal fee of $80 will be incurred in Year 1. It must be expensed when incurred.

- Inventory of one month of sales of product must be maintained, starting in Year-0.

- The tax rate is 25%.

- The cost of capital is 10%

We decide to reevaluate their inventory policy. Instead of maintaining an inventory of 5 products each year they plan to have customers purchase products in advance at a store and ship the products directly to their homes three months later. By how much does this sales strategy increase or decrease the value of the project? Compute the incremental NPV of the product.