You are considering purchasing a laundry-mat.  The venture is expected to last 10 years.  The following information is available:

Year 1 estimated financial statements are provided in Schedule A

Sales will grow by 10% per year for the first 5 years, and then grow by 1% per year starting in year 6.

All costs are variable, with the exception of depreciation which isstraight lined over 10 years.

Washers and Dryers costing $400,000 will be purchase immediately.  These appliances have a salvage value of $50,000 at the end of their useful life.

On the very last day of year 5, all of the washers will require a major overhaul at a cost of $80,000.  The purpose of this overhaul is to restore the equipment to its original condition, and the overhaul will not extend the life of the equipment or change its salvage value.

$20,000 in cash and inventory needs to be kept on hand at all times.

Tax rate is 25%.  Other tax information is in Schedule B.

The investor is also considering another investment that will generate after-tax income of 10%

Required:  Calculate the Net Present Value of this project.