Winthrop Company has an opportunity to manufacture and sell a new product for a five$-$year period. To pursue this opportunity, the

company would need to purchase a piece of equipment for $$130,000.$ The equipment would have a useful life of five years and a

$$10,000$ salvage value. The CCA rate for the equipment is $30\%.$ After careful study, Winthrop estimated the following annual costs and

revenues for the new product:

The company's tax rate is $30\%$ and its after$-$tax cost of capital is $10\%.$

Required:

Compute the net present value of the project. $($Hint$.$ Use Microsoft Excel to calculate the discount factor$($s$).)($Do not round

intermediate calculations and PV factor. Round the final answers to the nearest whole dollar. Negative value should be indicated

with minus sign.$)$

Would you recommend that the project be undertaken?