You have been hired as a consultant for Pristine Urban$-$Tech Zither, Incorporated $($PUTZ$),$

manufacturers of fine zithers. The market for zithers is growing quickly. The company

bought some land three years ago for $$2\mathrm{.}7$ million in anticipation of using it as a toxic

waste dump site but has recently hired another company to handle all toxic materials.

Based on a recent appraisal, the company believes it could sell the land for $$2\mathrm{.}9$ million

on an aftertax basis. In four years, the land could be sold for $$3\mathrm{.}1$ million after taxes. The

company also hired a marketing firm to analyze the zither market, at a cost of $$335,000.$

An excerpt of the marketing report is as follows:

The zither industry will have a rapid expansion in the next four years. With the brand

name recognition that PUTZ brings to bear, we feel that the company will be able to sell

$6,700,7,400,8,000,$ and $6,300$ units each year for the next four years, respectively.

Again, capitalizing on the name recognition of PUTZ, we feel that a premium price of

$$505$ can be charged for each zither. Because zithers appear to be a fad, we feel at the

end of the four$-$year period, sales should be discontinued.

PUTZ believes that fixed costs for the project will be $$675,000$ per year, and variable

costs are $15$ percent of sales. The equipment necessary for production will cost $$3\mathrm{.}45$

million and will be depreciated according to a three$-$year MACRS schedule. $($MACRS

Schedule$)$ At the end of the project, the equipment can be scrapped for $$575,000.$ Net

working capital of $$285,000$ will be required immediately. PUTZ has a tax rate of $21$

percent, and the required return on the project is $13$ percent. What is the NPV of the

project? $($Do not round intermediate calculations. Enter your answer in dollars, not

millions of dollars, and round your answer to $2$ decimal places, e$.$g$.,1,234,567\mathrm{.}89.)$