The Polestar, Inc invests $$300,000$ in new AI$-$driven auto$-$assembly robots and machinery that yields net after$-$tax cash flows of $$75,000$ at the end of each of the next five years. The required rate of return $($or the opportunity cost of capital$)$ is $12\%.$ What is the net present value $($NPV$)$ of the project? Is this project profitable? Please draw a cashflow diagram first.

Period

Cash Flow

$0$

$-420,000$

$1$

$80,000$

$2$

$80,000$

$3$

$80,000$

$4$

$80,000$

$5$

$80,000$