You are considering adding a new item to your company$$s line of

products. The machine required to manufacture the item costs

$$2000000,$ and it depreciates straight$-$line over $4$ years. The new

item would require a $$300000$ increase in inventory and a $$150000$

increase in accounts payable. You plan to market the items for four

years and then sell the machine for $$400000.$ You expect to sell

$20000$ items per year at a price of $$300.$ You expect manufacturing

costs to be $$220$ per item and the fixed cost to be $$300000$ per

year. If the tax rate is $38\%$ and your weighted average cost of

capital is $8\%$ per year, what is the net present value of selling

the new item?$$