16 A firm is considering a replacement project which requires the initial outlay of $300,000 w-hich includes both an after-tax salvage from the old asset of $12,000 and an additional working capital investment of $8,000. The 12-year project is expected to generate annual incremental cash flows of $54,000 and have an expected terminal value at the end of the project of $20,000. The cost of capital is 15 percent, and its marginal tax rate is 40 percent. Calculate the net present value of this project.

-$6,544.56

$68,781.83

-$596,451.57

-$3,548.43

$12,713.43