After spending $$9900$ on$$ client$-$development, you have just been offered a big production contract by a new client. The contract will add $$206,000$

to your revenues for each of the next five years and it will cost you $$105,000$ per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The existing equipment is fully$$ depreciated, but could be sold for $$54,000$ now. If you use it in the$$ project, it will be worthless at the end of the project. You will buy new equipment valued at $$25,000$ and use the$5-$year MACRS schedule to depreciate it$.$ It will be worthless at the end of the project. Your current production manager earns $$80,000$ per year. Since she is busy with ongoing$$ projects, you are planning to hire an assistant at $$37,000$ per year to help with the expansion. You will have to immediately increase your inventory from $$20,000$ to $$30,000.$ It will return to $$20,000$ at the end of the project. Your$$ company's tax rate is and your discount rate is $15\mathrm{.}4\%.$ What is the NPV of the$$ contract? $($Note$$: Assume that the equipment is put into use in year $1.)$