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We project unit sales for a new househald-use laser-guided cackroach search and destroy system as...

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Accounting

We project unit sales for a new househald-use laser-guided cackroach search and destroy system as follows:
\table[[Year,Undt 5ales],[1,93,500],[2,110,500],[3,133,500],[4,139,500],[5,92,500]]
The new system will be priced to sell at $450 each.
The cockroach eradicator project will require $1700,000 in net working capital to start and tocal net working captal will rise to 15% of the change in soles. The variable cost per unt is $320. and total fixed costs are $2,000,000 per year. The equipmomt necessary to begin production will cost a total of $20 mition. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of 20%. In five years, this equipment will actually be worth about 20% of its cost.
The relevam tax rate is 35%, and the required retum is 18% 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 2 decimal places. Omit $ sign in your response.)
NPY
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