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Wisconsin science is considering a three-year expansion project with an initial investment of $618,000 in automated...

Wisconsin science is considering a three-year expansion project with an initial investment of $618,000 in automated special DNA sequencing equipment. The project will not directly produce any sales but will reduce operating costs by $265,000 every year. The equipment is depreciated straight-line to a zero book value over the life of the project. At the end of the project the equipment will be sold for an estimated $60,000. The project will require $23,000 in extra inventory for spare parts and accessories (at t=0) and no longer need it as the project is wound down. The tax rate is 34% and the required rate of return is 9%. What is the project’s NPV?

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