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Ozumbo lnc. projects unit sales for a new product to be as follows for the next 5 years: 83,000, 92,000, 104,000, 98,000, and 84,000. Product of the new product will require a $1,500,000 in net working capital to start and additione net working capital investments equal to 15% of the projected sales for the following years. Total xed costs are $2,400,000 per year. variable production costs are $190 per unit and the units are priced at $345 each. The equipmer needed to begin production has an installed cost of $23,000,000. The machine qualifies for seven year MACRS for tax purposes. At the end of the project, the equipment can be sold for 20% of the initial acquisition cost. The firm has a 35% marginal tax rate and requires 18% rate of return on its investments. Calculate the net present value of the project. (Round to 2 decimals) wommmmmucmmumum, RECOVERY PERIOD CLASS YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS 15 YEARS 20 YEARS 1 .3333 .2000 .1429 .1000 .0500 .03750 2 .4445 .3200 .2449 .1800 .0950 .07219 3 .1481 .1920 .1749 .1440 .0855 .06677 4 .0741 .1152 .1249 .1152 .0770 .06177 5 .1152 .0899 .0922 .0693 .05713 6 .0576 .0892 .0737 .0623 .05285 7 .0893 .0655 .0590 .04888 8 .0446 .0655 .0590 .04522 9 .0656 .0591 .04462 10 .0655 .0590 .04461 11 .0328 .0591 .04462 12 .0590 .04461 13 .0591 .04462 14 .0590 .04461 15 .0591 .04462 16 .0295 .04461 17 .04462 18 .04461 19 .04462 20 .04461 21 .02231 Depreciation is expressed as a percent oi the asset's cost. These schedules are based on the IRS publication 946. How in Depreoiete Property and other details on depreciation are presented later in the chapter. Note that live-year depreciation annuity carries over six years Demise Ihe Its ammo: purchase is made in midyear