Problem:

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net aftertax salvage value is estimated at $11,000 and will be received during the last year of the project's life.

Requirement:

Question: What is the net present value of the project if the required rate of return is 12 percent?

Note: Please provide equation and explain comprehensively and give step by step solution.