A project requires an initial investment of $200000 and expects to produce a cas

A project requires an initial investment of $200000 and expects to produce a cash flow before taxes of 120000 per year for two years (i.e. cash flows will occur at t = 1 and t = 2). The corporate tax rate is 30%. The assets will depreciate using the MACRS 3-year schedule: (t = 1 33%); (t = 2: 45%); (t = 3: 15%); (t = 4: 7%). The companys tax situation is such that it can use all applicable tax shields. The opportunity cost of capital is 12%. Assume that the asset can sell for book value at the end of the project. Calculate the NPV of the project (approximately).