The following table presents sales forecasts for Golden Gelt Giftware. The unit

The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $45. The unit cost of the giftware is $30. Year Unit Sales 1 42000 2 48000 3 19000 4 9000 Thereafter 0 It is expected that net working capital will amount to 20% of sales in the following year. For example the store will need an initial (year-0) investment in working capital of .20 42000 $45 = $378000. Plant and equipment necessary to establish the Giftware business will require an additional investment of $220000. This investment will be depreciated using MACRS and a 3-year life. After 4 years the equipment will have an economic and book value of zero. The firms tax rate is 20%. What is the net present value of the project? The discount rate is 12%. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

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