Your firm is considering a new investment project producing a new product. You

expect to be able to sell $100,000$ units per year over the next four years at a price

of $$95$ per unit. Variable costs are expected to be $$70$ per unit, while fixed costs

for the project are expected to be $$65,000$ per year. The firm anticipates that the

new product will reduce profits on existing projects by $$5,000$ per year, pre$-$tax.

They do not believe competitors can offer a good substitute for the proposed

product. The project will require an immediate increase of $$300,000$ in net

working capital and the level of net working capital will increase by $2\%$ per year

over the project life until returning to its original level at the end of year $4.$ The

project requires $$10\mathrm{.}0M$ for new machinery. This machinery will be depreciated

straight$-$line over $4$ years. However, you expect to be able to sell it for $$4M$ upon

completion of the project $($at the end of year $4).$ The company's tax rate is $21\%.$ If

the cost of capital for the project is $7\%,$ what is the project's NPV$?$