Lakeside Winery is considering expanding its wine-making operations. The expansion will require new equipment costing $636,623 that would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The estimated salvage value is $188,924. The project requires $36,756 initially for net working capital, all of which will be recovered at the end of the project. The projected operating cash flow is $198,410 a year. What is the net present value of this project (in $) if the relevant discount rate is 15.97 percent and the tax rate is 33 percent? Answer to two decimals
