PROBLEM $8$C$-3$ Income Taxes and Net Present Value Analysis $[$LO $8-8]$

Lander Company has an opportunity to pursue a capital budgeting project with a five$-$year time horizon. After careful study, Lander estimated the following costs and revenues for the project:

Cost of equipment needed

$$250,000$

Working capital needed

Overhaul of the equipment in two years

$$60,000$

$$18,000$

Annual revenues and costs:

Sales revenues

$$350,000$

Variable expenses

$$180,000$

Fixed out$-$of$-$pocket operating costs

$$80,000$

The piece of equipment mentioned above has a useful life of five years and zero salvage value. Lander uses straight$-$line depreciation for financial reporting and tax purposes. The company's tax rate is $30\%$ and its after$-$tax cost of capital is $12\%.$ When the project concludes in five years the working capital will be released for investment elsewhere within the company.

Required:

Calculate the net present value of this investment opportunity.

Please explain final answer.