Vernal Company Has Been Offered a Seven-Year Contract to Supply

Vernal Company has been offered a seven-year contract to supply a part for the military.After careful study,the company has developed the following estimated data relating to the contract:
$\begin{array}{|l|r|}\hline \text { Cost of equipment needed } & \$ 300,000 \\\hline \text { Working capital needed to caryy inventories } & \$ 50,000 \\\hline \text { Annual Net Cash Inflow } & \$ 90,000 \\\hline\end{array}$
$$\begin{array} { | l | r | } \hline \text { Salvage Value of Equiprnent } & \$ 10,000 \\\hline\end{array}$$
The equipment above would be in Class 7 with a 15% CCA rate.The company would take the maximum CCA allowable each year.It is not expected that the contract would be extended beyond the initial contract period.The company's after-tax cost of capital is 10%,and the tax rate is 30%.
Required:
Use net present value analysis to determine whether or not the contract should be accepted.(Round all calculations to the nearest dollar.)