You have been hired as a consultant for pristine urban$-$tech zither inc $($PUTZ$),$ manufactures of fine zithers. The market for zithers is growing quikcly. The company bought some land three years ago for $1\mathrm{.}31$ million in anticipation of using it as a toxic materials. In anticipation of using it as a toxic waste dump site but has recently hired another company beleives it could sell the land for $1410000$ on an aftertax basis. In four years the land could be sold for $1,510,000$ after taxes. The company also hired a marketing firm to analyze the zither market at a cost of $$116,000.$ An excerpt of the marketing report as follows:

The zither industry will have 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 $2900,3800,4400,$ and $3300$ units each year for next $4$ years, respectivley. Again capitalizing on the name recognitin of PUTZ we feel that a premium price of $$560$ can be charged for each other zither. Because zither appear to be a fad, we feel at the end of the four year period, sales should be discontinued.

PuTZ feels that fixed costs for the project will be $$380,000$ per year, and variable costs are $10$ percent of sales. The equipment necessary for production will cost $2\mathrm{.}60$ million and will be depreciated according to a three$-$year MACRS schedule. At the end of the project, the equipment can be scrapped for $$355000.$ Net working capital of $$116000$ will be required immediately. PUTZ has a $40$ percent tax rate, and the required return on the project is $14$ percent. Assume the company has other profitable projects.

$\backslash$table$[[$Property Class$],[$Year$,$Three$-$Year,Pve$-$Year,Seven$-$Ylear$],[1,32\mathrm{.}32\%,2000\%,14\mathrm{.}29\%$