Your company, Dominant Retailer, Inc., is considering a projectwhose data are shown below. Revenue and cash operating expenses areexpected to be constant over the project's 5 year expectedoperating life; annual sales revenue is $95,000.00 and cashoperating expenses are $37,500.00. The new equipment's cost anddepreciable basis is $135,000.00 and it will be depreciated byMACRS as 5 year property. The new equipment replaces olderequipment that is fully depreciated but can be sold for $7,500. Inaddition, the new equipment requires an additional $5,000 of netoperating working capital, which can be fully recovered at the endof the project. The new equipment is expected to be sold for$10,995 at the end of the project in year 5. The marginal tax rateis 28.00%. What is the project's Initial Cash Outlay at Year0?  Note:  Enter your answerrounded off to two decimal points. Do not enter $ or comma in theanswer box. For example, if your answer is $12,300.456 then enteras 12300.46 in the answer box.

Using the information from problem 2 on Dominant Retailer, Inc.,what is the NPV of the Project if Dominant Retailer’s WACC is12.75%? Enter your answer rounded to two decimal places. Do notenter $ or comma in the answer box. For example, if your answer is$12,300.456 then enter as 12300.46 in the answer box.