Anatevka, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $2.8 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will have a market value of $240,000. The project requires an initial investment in net working capital of $330,000, all of which will be recovered at the end of the project. The project is estimated to generate $2,600,000 in annual sales, with costs of $1,300,000. The tax rate is 30 percent and the required return for the project is 13 percent. What is the net present value for this project?

A.

$594,831

B.

$718,595

C.

$674,208

D.

$466,811

E.

$506,841