Netgear is considering making a new wireless home networking gadget

Sales and cost forecasts: Annual sales of 50,000 units per year; for each of four years of forecasted product life, Wholesale price of $260, Unit production costs of $110

The product would be ready to ship in one year

The project requires: Purchasing new equipment for $7.5 million, Will be depreciated (straight-line) over a 5-year life, then scrapped

A new testing and support lab, which will cost $2.8 million per year (personnel costs, etc...)

Receivables and inventory are expected to be 15% of the each years annual sales and payables are expected to be 15% of the annual cost of goods sold

Netgears marginal tax rate is 30%. The discount rate is 12%.

What is the NPV from this project?