Your company has been doing well, reaching $$1\mathrm{.}01$ million in earnings, and is considering launching a new product. Designing the new product has already cost $$478,000.$ The company estimates that it will sell $808,000$ units per year for $$3\mathrm{.}05$ per unit and variable non$-$labor costs will be $$1\mathrm{.}08$ per unit. Production will end after year $3.$ New equipment costing $$1\mathrm{.}09$ million will be required. The equipment will be depreciated to zero using the $7-$year MACRS schedule. You plan to sell the equipment for book value at the end of year $3.$ Your current level of working capital is $$302,000.$ The new product will require the working capital to increase to a level of $$378,000$ immediately, then to $$397,000$ in year $1,$ in year $2$ the level will be $$358,000,$ and finally in year $3$ the level will return to $$302,000.$ Your tax rate is $21\%.$ The discount rate for this project is $10\mathrm{.}1\%.$ Do the capital budgeting analysis for this project and calculate its NPV$.$

Note: Assume that the equipment is put into use in year $1.$

Design already happened and is $($irrelevant$).($Select from the drop$-$down menu.$)$

Acoording to the $7-$year MACRS schedule, depreciation in year $1$ will be $ $($Round to the nearest dollar.$)$