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Winter Tyme, Inc., produces coats and jackets for the Seattle market. The company is considering a...

Winter Tyme, Inc., produces coats and jackets for the Seattle market. The company is considering a new 3-year expansion project into the Portland market. The expansion requires an initial investment of $1.458 million in new plant and equipment. These assets will be depreciated straight-line to zero over its 3-year tax life, after which time the assets can be sold for $113,400. The expansion also requires an initial investment in net working capital of $162,000, but this investment will be recovered at the end of the project's life. The project is estimated to generate $1,296,000 in annual sales, with costs of $518,400. The tax rate is 33 percent and the required return on the project is 12 percent.

What is the NPV?

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