You consider launching a new project of face (medical) masks manufacturing. 5 years project.

The expected mask sales price is $1. The year 1 volume forecast is 10 M units. Year-over-year sales growth is 10% (volume is stable, only price increase).

The cost per unit is $0.6. COGS increase year-over-year 10%.

To launch manufacturing, you need 10 sewing machines. 1 machine price is $200,000, the useful life is 5 years. Buy it on year 0. Depreciation starts from year 1.

Annual operating expenses including rent of workshop, office, salary etc. is $2.7M without depreciation. Depreciation I on top of that (not included to $2.7M).

Opex (without depreciation) annual growth = average inflation rate 10%.

Inventory needs to be maintained every time at a level of 3 M units. This volume should be produced in year 1 and kept stable all 10 years (the same $ value year over year do not increase every year on inflation rate).

No credit terms to your customers, no credit terms from your suppliers. All debts are to be paid right in time of delivery/purchase.

The tax rate is 30%. The opportunity cost of capital relevant to this industry is 20%.

Estimate the NPV of the project (carrying inventory) assuming at five-years life for the investment.