A company is analyzing a project and has determined that the initial cost will be $720,000 and the required rate of return needs to be 12 percent. The project has a 60 percent chance of success and a 40 percent chance of failure. If the project fails, it will generate an annual after-tax cash flow of $145,000. If the project succeeds, the annual after-tax cash flow will be $320,000. The company has further determined that if the project fails, it will shut the project down after the first year and sell the equipment for the after-tax salvage value of $230,000. If however, the project is a success, the company can expand it with no additional investment and increase the after-tax cash flow to $340,000 a year for Years 2-5. At the end of Year 5, the project would be terminated and have no salvage value. What is the expected net present value of this project at Time 0?

		$122,344.64
		$127,256.08
		$133,940.20
		$138,588.63
		$143,217.71