7. Fireplaces etc. is about to launch a new range of wood stoves, priced at $110 per unit. The unit cost of wood stoves is 65$. The firm expects to sell the wood stoves over the next 5 years. The venture will require an initial investment of 25,000. Assume that investment will depreciate in a straight line. At the end of 5 years, the asset will have zero salvage value. Net working capital requirement is expected to be 20% of sales. Tax rate = 35%. Discount rate = 15%. What is the NPV? Should the company go ahead with the project?

Year	Unit Sales
1	300
2	350
3	400
4	500
5	500