Your firm is considering a project that requires a $$500,000$ investment in fixed

assets. These assets will be depreciated straight line over $5$ years for tax

purposes. However, you expect to be able to sell them for $$125,000$ upon

completion of the project four years from now. The project will require a $$30,000$

initial investment in net working capital. Finally, the project will make use of an

asset that the firm purchased two years ago for $$80,000.$ They have been

depreciating that asset on a $10-$year straight$-$line depreciation schedule and they

estimate they could sell the asset today for $$21,000.$ The new project is expected

to generate annual operating cash flows of $$130,000$ per year over its $4-$year life.

The firm's tax rate is $21\%$ and the required return on the project is $8\%.$ What is

the project's NPV and should the firm undertake this investment?