20 You were tasked to evaluate an expansion project and you collected the following information: Initial investment is $1.2m. Your annual EBIT is going to be $500,000, which is net of depreciation of $150,000 and before tax, whereby your corporate tax rate is 21%. At the project start, you need to build up net working capital to a level $100,000, and at project end, in 3 years, you will release that net working capital again and you are expected to recover the full $100,000. There are no other salvage value considerations for this project. Assuming a risk-adjusted discount rate of 10%, the net present value of this project equals

Select one:

a.1,155,669

b.-144,331

c.130,466

d.-44,331