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 $$790,000$ 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 $$1,000,000$

on an aftertax basis. In four years, the land could be sold for $$1,250,000$ after taxes. The

company also hired a marketing firm to analyze the zither market, at a cost of $$135,000.$

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

$7,130,7,940,9,230,$ and $6,120$ units each year for the next four years, respectively. Again,

capitalizing on the name recognition of PUTZ, we feel that a premium price of $$320$ can

be charged for each zither. Because zithers appear to be a fad, we feel at the end of the

$4-$year period, sales should be discontinued.

PUTZ feels that fixed costs for the project will be $$390,000$ per year, and variable costs

are $20$ percent of sales. The equipment necessary for production will cost $$3,500,000$

and will be depreciated according to a $3-$year MACRS schedule. At the end of the

project, the equipment can be scrapped for $$330,000.$ Net working capital of $$235,000$

will be required immediately. PUTZ has a tax rate of $22$ percent and the required return

on the project is $13$ percent. $($MACRS schedule$)$

What is the NPV of the project? $($Do not round intermediate calculations and round

your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$