Automated Paving Stone Installer $($APSI$)$ Projections

$$

A new factory is needed to manufacture the APSI. The facility can produce up to $90$ machines each year over the product$$s $15-$year life. A parcel of land worth $$750,000$ will be purchased, and a building constructed for $$1,900,000.$ Equipment costing $$4,800,000$ will also be required. At the end of the project$$s life, it is estimated the land can be sold for $$760,000,$ while the building will have a residual value of $$600,000$ and the equipment$$s residual value will be negligible. Building and equipment costs are subject to CCA rates of $4\mathrm{.}0\%$ and $20\mathrm{.}0\%$ respectfully. An investment of $$390,000$ in net working capital is needed to support production that will be liquidated at the end of the product$$s life.

$$

APSI sales are forecasted to be $30$ units in the first year, $45$ in the second year, $60$ in the third year, $75$ in the fourth year, and then reach factory capacity of $90$ units in the fifth year. The product$$s list price is $$230,000$ and its unit cost is $$180,000,$ which includes direct materials, direct labour and factory overhead. Incremental selling and administration costs to support the business will be $$2,100,000$ per annum. Existing corporate overhead of $$200,000$ per year will be allocated to the product as per company policy. Factory equipment will be overhauled$/$renewed at a cost of $$1,400,000$ during year $8.$ The overhaul would be treated as a capital investment, both in terms of financial accounting and tax accounting.

$$WACC is $2\mathrm{.}85\%.$ What is the NPV$?$