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Year 1 2 3 Unit Sales 103,000 115,000 138,000 144,000 97,000 4 5 The new system will be priced to sell at $495 each The

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Year 1 2 3 Unit Sales 103,000 115,000 138,000 144,000 97,000 4 5 The new system will be priced to sell at $495 each The cockroach eradicator project will require $1.800.000 in networking capital to start and total networking capital willing to 15 the change in sales The variable cost per unit is $365, and total fixed costs are $2.900.000 per year. The equipment necessary to begin production will cost a total of $24 million This equipment is mostly industrial machinery and thus qualities for CCA at a rate of 20%. In five years this equipment will actually be won about 20% of its cost. The relevant tax rate is 35 and the required return is 15% Based on these preliminary estimates what is the NPV of the project (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places, Omits sign in your response NPV 5 We project unit sales for a new household-use laser-guided cockroach search and destroy system as follows: Year 1 2 3 Unit Sales 103,000 115.000 138,000 144,000 97.000 4 5 The new system will be priced to sell at $495 each. The cockroach eradicator project will require $1,800,000 in net working capital to start and total networking capital wil nie to 15 the change in sales. The variable cost per unit is $365, and total fixed costs are 52.900.000 per year. The equipment necessary to begin production will cost a total of $24 million. This equipment is mostly industrial machinery and thus qualities for CCA at a late at 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 15% Based on these preliminary estimates, what is the NPV of the project (Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to 2 decimal places: Omit Sign in your response.) NPV S18121802

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