International Buckeyes is building a factory that can make 1 million buckeyes a year for five years. The factory costs $9 million. In year 1, each buckeye will sell for $4.50. The price will rise 5 percent each year. During the first year, variable costs will be $0.375 per buckeye and will rise by 2 percent each year. International Buckeyes will depreciate the factory at a CCA rate of 25 percent.

International Buckeyes expects to be able to sell the factory for $750,000 at the end of year 5. The proceeds will be invested in a new factory. The discount rate for risky cash flows is 25 percent. The discount rate for risk-free cash flows is 24 percent. Cash flows, except the initial investment, occur at the end of the year. The corporate tax rate is 38 percent. What is the NPV of this project?