Problem $6-27$ Calculating Project NPVWith the growing popularity of casual surf print clothing, two

recent MBA graduates decided to broaden this casual surf concept to

encompass a $$surf lifestyle for the home.$$ With limited capital,

they decided to focus on surf print table and floor lamps to accent

people$$s homes. They projected unit sales of these lamps to be

$10,200$ in the first year, with growth of $7$ percent each year.

Production of these lamps will require $$49,000$ in net working

capital to start. Total fixed costs are $$131,000$ per year, variable

production costs are $$18$ per unit, and the units are priced at $$60$

each. The equipment needed to begin production will cost $$585,000.$

The equipment will be depreciated using the straight$-$line method

over a $5-$year life and is not expected to have a salvage value.

The$$tax rate is $22$ percent$$and the required rate of

return is $17$ percent. What is the NPV of this

project?$($Do not round intermediate calculations

and$$round your answer to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$