Manta Lasers Co., a mid-sized tech manufacturer specializing…
Manta Lasers Co., a mid-sized tech manufacturer specializing in precision laser equipment, has spent the past two years in R&D developing a new, highly efficient industrial laser designed for use in surgical manufacturing and aerospace applications. Based on successful prototype testing and positive early interest from potential clients, the company is now considering moving forward with production.The required upfront investment for production and launch is $1,250,000.Drawing from historical data and market analysis, the firm has forecasted the following annual free cash flows from the project over the next six years (after all operating and capital expenses):Year 1 to Year 6: $200,000, $250,000, $275,000, $300,000, $350,000, and $400,000. If the company’s cost of capital is 15.85%, what is the Net Present Value (NPV) of this investment? Hint: Enter your answer rounded to two decimal places.