Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.994 million.

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.994 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $466,200. The project requires an initial investment in net working capital of $666,000. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 31 percent and the required return on the project is 15 percent. The NPV for this project is