TomTom Industries is analyzing an average-risk project, and the following data have been developed. Unit sales will be constant, but the sales price should increase with inflation. Fixed costs will also be constant, but variable costs should rise with inflation. The project should last for 3 years. No change in net operating working capital would be required. This is just one of many projects for the firm, so any losses on this project can be used to offset gains on other firm projects. What is the project's expected NPV? Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC or the cost of capital 15.00%

Net investment cost (depreciable basis) $500,000

The salvage value of its equipment $0

No other fixed assets will be acquired for following years

Units sold (constant through years) 25,000

Average price per unit, Year 1 $25.00

Fixed operating cost, exclude depreciation (constant through years) $150,000

Variable operating cost per unit, Year 1 $7.50

Variable operating cost and average price per unit increase every year at inflation rate

Annual depreciation rate 33.33%

Expected inflation rate per year 5.00% Tax rate 40.00%