Please explain every step, and Round the final answer to 4 decimal places.

Question 4 DBC Inc. is evaluating a project. The initial investment is an equipment which costs $350,000 and has CCA rate of 30%. There is no other asset in the asset class. When the project ends at year 8, the equipment is expected to be sold for $35,000. The project is expected to generate before tax cash flow of $75,000 per year for 8 years. The cost of unlevered capital is 12% and the cost of debt is 5%. The corporate tax rate is 35%. DBC plans to borrow $160,000 (net of flotation cost) from the Provincial Recovery Fund at a subsidized rate of 2%. The flotation cost is 3%. The Fund requires DBC to repay 25% of the loan at year 4 and the remaining at year 8. Using the adjusted present value method, calculate the NPV of the project