After spending

$ $9$ comma $900$$$9,900$

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

$ $195$ comma $000$$$195,000$

to your revenues for each of the next five years and it will cost you

$ $101$ comma $000$$$101,000$

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

$ $51$ comma $000$$$51,000$

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$$$31,000$

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

$ $80$ comma $000$$$80,000$

per year. Since she is busy with ongoing$$ projects, you are planning to hire an assistant at

$ $39$ comma $000$$$39,000$

per year to help with the expansion. You will have to immediately increase your inventory from

$ $20$ comma $000$$$20,000$

to

$ $30$ comma $000$$$30,000.$

It will return to

$ $20$ comma $000$$$20,000$

at the end of the project. Your$$ company's tax rate is

$21\%21\%$

and your discount rate is

$14\mathrm{.}8\%14\mathrm{.}8\%.$

What is the NPV of the$$ contract?

$($Note$$:

Assume that the equipment is put into use in year

$1.)$