An all equity financed project has a 5-year life and is expected to generate the following net income:

year 1: $86 year 2: $82 year 3: $119 year 4: $112 year 5: $130

The project has no working capital. The production equipment for the project was purchased at time 0 for $639 and depreciated straightline to $0 over the life of the project. The equipment has no salvage value at the end of the project.

The project cost of capital is 7.7%. The tax rate is 11%.

What is the NPV of the project? Give your answer to the nearest whole dollar.

Selected Answer:	?
Correct Answer:	294 1