PLEASE DO NOT USE EXCEL AS I NEED TO UNDERSTAND THE FORMULA AND HOW TO DO IT, THANK YOU

Harley intends to launch a new project with the following information:

- The project requires an initial investment in fixed assets of $6,000,000.

- This investment will be depreciated straight-line over five years to a value of zero.

- When the project comes to an end at the end of five years, the equipment will be sold for $500,000.

- The firm believes that working capital at each date must be maintained at 10% of next years forecasted sales starting immediately.

- Production costs are estimated at 25% of revenue.

- Sales forecasts (in $) are given in the following table:

- The tax rate is 25% and the discount rate of the project is 12%.

Calculate the NPV of the project.

\begin{tabular}{lllllll} \hline Year & 0 & 1 & 2 & 3 & 4 & 5 \\ Sales & 0 & 2,000,000 & 2,400,000 & 4,000,000 & 4,000,000 & 2,400,000 \\ \hline \end{tabular}