Wilson, Inc., is considering a new four-year expansion project that requires an initial fixed asset investment of $1,875,000. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will be worthless. The project is estimated to generate $2,040,000 in annual sales, with costs of $1,235,000. If the tax rate is 35%, and the required return on the project is 12%, what is the project's NPV?

Hint: Use Tax Shield Approach to calculating Operating Cash Flow formula learned in Chapter 9

		$212,608
		$2,087,608
		-$12,608
		$771,875
		$44,469