Nevus Tattoo Parlor is considering a capital budgeting project. This project will initially require a $25,000 investment in equipment and a $3,000 working capital investment. The useful life of this project is 5 years with an expected salvage value of zero on the equipment. The working capital will be released at the end of the 5 years. The new system is expected to generate net cash inflows of $9,000 per year in each of the 5 years. Nevus' discount rate is 14%.
PV of annuity for 5 periods at 14%................. 3.433
PV of $1 for 5 periods at 14%.................... 0.519
what the net present value of this project is closest to ?