Question: Sanders Enterprises, Inc., has been considering the purchase of a new manufacturing facility for $274,000. the facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years. Operating revenues from the facility are expected to be $109,000, in nominal terms, at the end of the first year. the revenues are expected to increase at the inflation rate of 4 percent. Production costs at the end of the first year will be $34,000, in nominal terms, and they are expected to increase at 5 percent per year. the real discount rate is 7 percent. the corporate tax rate is 39 percent. Sanders has other ongoing profitable operations.

Calculate the NPV of the project. (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16))

Should the company accept the project?