We project unit sales for a new household$-$use laser$-$guided cockroach search and destroy system as follows:

The new system will be priced to sell at $$380$ each. The cockroach eradicator

project will require $$1,800,000$ in net working capital to start, and total net

working capital will rise to $15\%$ of the change in sales. The variable cost per

unit is $$265,$ and total fixed costs are $$1,200,000$ per year. The equipment

necessary to begin production will cost a total of $$24$ million. This equipment

is mostly industrial machinery and thus qualifies for CCA at a rate of $20\%.$ In

five years, this equipment will actually be worth about $20\%$ of its cost. The

relevant tax rate is $35\%,$ and the required return is $18\%.$ Based on these

preliminary estimates, what is the NPV of the project?