Problem 1 (3 points) Suppose you have a project which requires an initial investment (in a piece of equipment) of $200,000. The equipment has a CCA rate of 30% (the usual half-year applies to the CCA calculation). The project will last 3 years. At the end of year 3, the equipment will be sold for $35,000 (after tax). The project will reduce production cost by $110,000 per year. The initial working capital requirement is $25,000. An additional amount of $8,000 is required for year 1. All will be recovered at the end of year 3. The tax rate is 40% and the discount rate is 10%. What is the NPV?