Amco Productions is considering a new capital budgeting project that will last for three years. Amco plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:

Year	0	1	2	3
Sales (Revenues)		100,000	100,000	100,000
- Cost of Goods Sold (50% of Sales)		50,000	50,000	50,000
- Capital Cost Allowance		13,500	22,950	16,065
= EBIT		36,500	27,050	33,935
- Taxes (35%)		12,775	9468	11,877
= unlevered net income		23,725	17,582	22,058
+ Capital Cost Allowance		13,500	22,950	16,065
+ changes to working capital		-5000	-5000	10,000
- capital expenditures	-90,000

The net present value (NPV) for Amco's Project is closest to:

Question options:

1)

$1351

2)

-$4825

3)

$4825

4)

$28,772

5)

$0