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What is the NPV of an investment with the following information: Initial investment at time t=0 is $1,600,000 Life of project is 10 years Initial

What is the NPV of an investment with the following information:

  • Initial investment at time t=0 is $1,600,000
  • Life of project is 10 years
  • Initial investment depreciated to $0 via straight-line over entire life
  • NWC investment required = $0.00
  • Expected market salvage value of investment assets = $0.00
  • Starting 1-year from today, and remaining constant over project life:
  • Incremental sales as a result of investment = $1,400,000 / year
  • Incremental expenses as a result of investment = $1,000,000 / year
  • firm' tax rate = 32%
  • required return on investment = 12%

Enter answer in dollars, rounded to the nearest dollar.

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