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Argo Incorporation is considering a capital expansion project. The initial investment of undertaking this project is $105,500. This expansion project will last for five years. The net operating cash flows from the expansion project at the end of year 1, 2, 3, 4 and 5 are estimated to be $22,500, $25,800, $33,000, $45,936 and $58,500 respectively.

Argo's weighted average cost of capital is 18%. What is the NPV of undertaking this expansion project if the weighted average cost of capital is used as the discount rate?

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