A company is considering a three-year investment project that requires an initial fixed asset investment of 1,980,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The company can sell the fixed asset for $300,000 (pre-tax) when the project closes. In addition, the project requires an initial investment of $200,000 in net working capital, but it will be fully recovered when the project ends. The project is estimated to generate $2,820,000 in annual sales, with operating costs of $1,350,000. The tax rate is 25%. What is the net present value of the project if the required rate of return is 12 percent?

Multiple Choice:

$1,321,997

$1,270,274

$1,218,551

$1,166,828

$1,115,105