Your company is considering a $3-$year contract to produce organic chocolates in Seattle. The equipment needed would cost $$50,000$ and would be depreciated on a $5-$year basis to zero. You think you might be able to sell the equipment at the end of the contract for $$24,000.$ You will also use some existing equipment with a book value of zero and a market value of $$10,000.$ You would make the chocolate in some unused space in your facility. You have no other plans to use that space, but it represents $10\%$ of the space in that facility. The annual cost of operating the facility is $$100,000.$ The cost of producing the chocolate would be $$200,000$ per year. The revenues are expected to be $$225,000$ per year. You are also planning to do market research costing $$10,000$ before picking the flavors of chocolate to produce. New working capital for production will be $$20,000$ immediately. Project working capital will stay level at $$20,000$ in year $1$ and $2$ and then drop to $0$ at the end of the project. Current working capital levels elsewhere in the company are $$15,000.$ Your discount rate is $12\%$ and your tax rate is $35\%.$ Forecast all incremental free cash flows and compute thre project's NPV$.$ You can assume that the company has taxable income in other parts that can be shielded from taxes by costs.