19. The company plans to buy a machine that will cost $12,000 at Time 0 and can be sold after 3 years for $1,000. Besides, the Cha tr li t im 0,25 company needs to invest $2,000 in inventories at Time 0; these funds will be recovered when the machine is retired at the end of Year 3. The machine will generate sales of $11,000 per year for 3 years and operating costs (excluding depreciation) will be 50% of sales. The company uses the straight-line method to depreciate its fixed asset over 3 years of operation. Assume the corporate tax rate is 30%, and the company can get a tax refund from this project if the project's income is negative, and a 10% cost of capital (WACC). What is the project's NPV?

a. $601.21 b. $647.85 C. $587.15 d. $629.17