You are considering investing in a project that increases annual costs by $25,000 per year over the project's 5 year life . The project has an initial cost of $ 500,000 and will be depreciated straight - line over 5 years to a salvage value of zero . Assume a 32 % tax bracket and a discount rate of 11 . Suppose the equipment is sold at the end for $300,000, pretax. What is the NPV?