Johnson inc. is about to start a two year project. It will require an upfront investment of $200,000 in a new machine to get started (this initial investment will be made today, at time t = 0). At the...

Johnson inc. is about to start a two year project. It will require an upfront investment of $200,000 in a new machine to get started (this initial investment will be made today, at time t = 0). At the end of year one (time t = 1), the project will generate sales of $418,000, costs of good sold of $384,000, and depreciation expense of $100,000. At the end of year two, the project will generate sales of $728,000, costs of good sold of $481,000, and depreciation expense of $100,000. To get started, an investment in working capital of $232,000 is needed at time t = 0.
None
of the working capital will be recouped at the end of the project, and at the end, the machine will also be scrapped. What is the NPV of the project if the opportunity cost of capital is 12% and the tax rate is 31%?