You have been hired as a consultant for Pristine Urban$-$Tech Zither, Inc. $($PUTZ$),$ manufacturers of fine zithers.

The market for zithers is growing quickly. The company bought some land three years ago for $$2\mathrm{.}1$ 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{.}3$ million on an aftertax

basis. In four years, the land could be sold for $$2\mathrm{.}4$ million after taxes. The company also hired a marketing firm

to analyze the zither market, at a cost of $$125,000.$ 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 $3,600,4,300,5,200,$ and $3,900$ units each year

for the next four years, respectively. Again, capitalizing on the name recognition of PUTZ, we feel that a premium

price of $$750$ 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 $$415,000$ per year, and variable costs are $15$ percent of

sales. The equipment necessary for production will cost $$3\mathrm{.}5$ million and will be depreciated according to a

three$-$year MACRS schedule. At the end of the project, the equipment can be scrapped for $$350,000.$ Net

working capital of $$125,000$ will be required immediately. PUTZ has a $22$ percent tax rate, and the required

return on the project is $13$ percent. What is the NPV of the project?Complete the following analysis. Do not hard code values in your calculations. Enter a $"0"$ for any cost

that should not be included. You must use the built$-$in Excel function to calculate the NPV$.$