Year 0 Revenues Year 1 800,000 Year 2 Year 3 800,000 800,000 Cost of Goods Sold...

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Year 0 Revenues Year 1 800,000 Year 2 Year 3 800,000 800,000 Cost of Goods Sold -300,000 -300,000 -300,000 Gross Profit 500,000 Selling General and Admin -110,000 500,000 500,000 -110,000 -110,000 Depreciation -180,000 -180,000 -180,000 EBIT 210,000 210,000 210,000 Income tax (20%) -42,000 -42,000 -42,000 Incremental Earnings 168,000 168,000 168,000 Capital Purchases -600,000 Changes to NWC -12,000 -12,000 -12,000 Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8%, what is the net present value (NPV) of this project? Year 0 Revenues Year 1 800,000 Year 2 Year 3 800,000 800,000 Cost of Goods Sold -300,000 -300,000 -300,000 Gross Profit 500,000 Selling General and Admin -110,000 500,000 500,000 -110,000 -110,000 Depreciation -180,000 -180,000 -180,000 EBIT 210,000 210,000 210,000 Income tax (20%) -42,000 -42,000 -42,000 Incremental Earnings 168,000 168,000 168,000 Capital Purchases -600,000 Changes to NWC -12,000 -12,000 -12,000 Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8%, what is the net present value (NPV) of this project?