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

year 1: $41 year 2: $50 year 3: $84 year 4: $80 year 5: $104

The project has no investment in property, plant and equipment (the production facilities are leased).

There is a time 0 investment in net working capital for the project of $13 and then as follows over the life of the project:

year 1: $12 year 2: $21 year 3: $15 year 4: $20 year 5: $18

All working capital accounts are zeroed out immediately at the end of the project.

The project cost of capital is 6.4%. The tax rate is 15%.

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

Selected Answer:
Correct Answer:	287 1