Project $x$ involves a new type of graphite composition in$-$line skate wheel. We think we can sell

$2,000$ units per year at a price of $$1,000$ each. Variable costs will run about $$400$ per unit, and

the product should have a five$-$year life. Fixed costs for the project will run $$450,000$ per year.

Further, we will need to invest a total of $$1,250,000$ in manufacturing equipment. This

equipment is seven$-$year MACRS property for tax purposes. In five years, the equipment will be

worth about $10$ percent what we paid for it$.$ At the beginning of the project, accounts receivable

will increase by $$200,000,$ inventories will increase by $$205,000,$ and accounts payable will

increase by $$220,200.$ After that, net working capital requirements will be $20$ percent of sales.

All relevant investments in net working capital will be recovered at the end of the project. $?$ The

required rate of return is $15$ percent and the tax rate is $21$ percent. What is the project's NPV$?$

Should the project be accepted based on NPV$?$

$($not on excel$)$