After spending $ $9$ comma $300$ on$$ client$-$development, you have just been offered a big production contract by a new client. The contract will add $ $195$ comma $000$ to your revenues for each of the next five years and it will cost you $ $98$ comma $000$ per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The existing equipment is fully$$ depreciated, but could be sold for $ $53$ comma $000$ now. If you use it in the$$ project, it will be worthless at the end of the project. You will buy new equipment valued at $ $31$ comma $000$ and use the$5-$year MACRS schedule to depreciate it$.$ It will be worthless at the end of the project. Your current production manager earns $ $79$ comma $000$ per year. Since she is busy with ongoing$$ projects, you are planning to hire an assistant at $ $37$ comma $000$ per year to help with the expansion. You will have to immediately increase your inventory from $ $20$ comma $000$ to $ $30$ comma $000.$ It will return to $ $20$ comma $000$ at the end of the project. Your$$ company's tax rate is $21\%$ and your discount rate is $14\mathrm{.}7\%.$ What is the NPV of the$$ contract? $($Note$$: Assume that the equipment is put into use in year $1.)$Calculate the free cash flows below for years $0$ through$2$:$($Round to the nearest$$ dollar.$)$

Year $0$

Year $1$

Year $2$

Sales

$

$

$

$-$ Cost of Goods Sold

Gross Profit

$

$

$

$-$ Annual Cost

$-$ Depreciation

EBIT

$

$

$

$-$ Tax

Incremental Earnings

$

$

$

$+$ Depreciation

$-$ Incremental Working Capital

$-$ Opportunity Cost

$-$ Capital Investment

Incremental Free Cash Flow

$

$

$

Part $2$

Calculate the free cash flows below for years $3$ through$6$:

Year $3$

Year $4$

Year $5$

Year $6$

Sales

$

$

$

$

$-$ Cost of Goods Sold

Gross Profit

$

$

$

$

$-$ Annual Cost

$-$ Depreciation

EBIT

$

$

$

$

$-$ Tax

Incremental Earnings

$

$

$

$

$+$ Depreciation

$-$ Incremental Working Capital

$-$ Opportunity Cost

$-$ Capital Investment

Incremental Free Cash Flow

$

$

$

$

Part $3$

The NPV of the project is $$$

$$

enter your response here. $($Round to the nearest$$ dollar.$)$