What is the net present value of Project Y, a 3-year project being evaluated by Red Lake Construction? The project would involve an initial investment in equipment of $323,000. To finance the project, Red Lake Construction would borrow $323,000. The firm would receive $323,000 today and pay $426,000 in 3 years (consisting of an interest payment of $103,000 and a principal payment of $323,000). Capital spending would be $0 in year 1 and $0 in year 2. The equipment would be sold for an after-tax cash flow of $52,000 in year 3. Operating cash flows are expected to be 187,000 dollars in year 1, -24,000 dollars in year 2, and 174,000 dollars in year 3. The changes in net working capital are expected to be 14,000 dollars at time 0, 31,000 dollars in year 1, -7,000 dollars in year 2, and -38,000 dollars in year 3. The cost of capital for the project is 9.54 percent and the interest rate on the loan would be 9.67 percent.