58. Wet and Wild Water Company drills small commercial water wells. The company is in the process of analyzing the purchase of a new drill. Information on the proposal is provided below. Initial investment: Asset $160,000 Working capital $ 32,000 Operations (per year for four years): Cash receipts $160,000 Cash expenditures $ 88,000 {NET CASH INFLOW = $72,000} Disinvestment: Salvage value of drill (existing) $ 16,000 Discount rate 20% What is the net present value of the investment? Assume there is no recovery of working capital. a. $(62,140) b. $10,336 c. $42,362 d. $186,336