A company is considering spending $255,000 at Time 0 to test a new product. Depending on the test results, the company may decide to spend $543,000 at Time 1 to start production of the product. If the product is introduced and it is successful, it will produce after tax cash flows of $419,000 a year for Years 2 through 5. The probability of successful test and investment is 60 percent. What is the net present value at Time 0 given a 13 percent discount rate?

		$150,278.32
		$142,097.50
		$134,411.64
		$126,380.72
		$118,435.48