You and a Classmate decide to start a manufacturing skateboards for a skateboard sharing company. This is a five year project that requires an initial investment of $600,000 in a machinery that will be fully deprecated in a straight line over the five years. The machinery has no salvage value. You believe that you can sell 11,750 units in year one at a price of $65 per unit. You expect sales volume to grow at 8%. The units have a variable cost of $22 and has fixed costs of $130,000 annually. The tax rate is 21% and your cost of capital is 18%. What is the NPV of the project?

You and a Classmate decide to start a manufacturing skateboards for a skateboard sharing company. This is a five year project that requires an initial investment of $600,000 in a machinery that will be fully deprecated in a straight line over the five years. The machinery has no salvage value. You believe that you can sell 11,750 units in year one at a price of $65 per unit. You expect sales volume to grow at 8%. The units have a variable cost of $22 and has fixed costs of $130,000 annually. The tax rate is 21% and your cost of capital is 18%. What is the NPV of the project?