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Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...

Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of $3.6 million. The fixed asset is eligible for 100 percent bonus depreciation in the first year. At the end of the project, the asset can be sold for $455,000. The project is expected to generate $3.2 million in annual sales, with annual expenses of $970,000. The project will require an initial investment of $505,000 in NWC that will be returned at the end of the project. The corporate tax rate is 25 and the project has a required return of 14 percent. What is the NPV of the project?
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