A project requires an initial investment in equipment of $$100,200$ and then requires an initial investment in working capital of $$16,800($at $t=0).$ You expect the project to produce sales revenue of $$137,000$ per year for three years. You estimate manufacturing costs at $60$ percent of revenues. $($Assume all revenues and costs occur at year$-$end $[$i$.$e$.,t=1,t=2,$ and $t=3).$ The equipment depreciates using straight$-$line depreciation over three years. At the end of the project, the firm can sell the equipment for $$13,740$ and recover the investment in net working capital. The corporate tax rate is $21$ percent and the cost of capital is $15$ percent. Calculate the NPV of the project.

Multiple Choice

$$14,031$

$$8,639$

$$5,137$

$-$$$4,032$