We project unit sales for a new househalduse laserguided cackroach search and destroy system as follows:
tableYearUndt ales
The new system will be priced to sell at $ each.
The cockroach eradicator project will require $ in net working capital to start and tocal net working captal will rise to of the change in soles. The variable cost per unt is $ and total fixed costs are $ per year. The equipmomt necessary to begin production will cost a total of $ mition. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of In five years, this equipment will actually be worth about of its cost.
The relevam tax rate is and the required retum is Based on these preiminary estmales, what is the NPV of the project? Enter the answer in dollars. Do not round your intermediate calculations. Round the final answer to decimal places. Omit $ sign in your response.
NPY