Adventures Plus manufactures sleeping bags, and is considering adding hiking backpacks to their product line. The 5-year project would require new equipment valued at $725,000. The equipment will be depreciated on a straight-line basis to zero over the life of the project, and will be salvaged for $90,000 at the end of the project. The project will also require an investment in inventory of $40,000, will increase accounts payable by $61,000 and increase accounts receivable by $30,000. All net working capital will be recovered at the end of the project. Adventures Plus expects to sell 10,000 backpacks per year at $120 each. The variable cost of backpacks will be $55. Last year, Adventures Plus sold 7,800 sleeping bags at $90. The new equipment will reduce the variable cost of sleeping bags from $40 to $30. The project will also reduce fixed production costs by $5,000 annually. Adventures Plus faces a 21 percent tax rate and the company's discount rate is 14.4 percent. Calculate the total incremental revenues from this project. $744,000 $736,000 $752,000 $733.000