PROBLEM 3 (18 POINTS) Lakeside Winery is considering expanding its wine making operations. The expansion will require new equipment costing $800,000 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The equipment can be sold for $250,000 after the four years. The project requires $46,000 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $211,500 a year. What is the net present value of this project if the relevant discount rate is 15 percent and the tax rate is 21 percent? ANSWER: Net Present Value =