Assume that a company is considering a capital investment project with a four-year time horizon and the following cash flows:

Cost of new equipment	$	210,000
Working capital required	$	50,000
Annual net cash inflows	$	100,000
Maintenance and repairs in third year	$	40,000
Salvage value of equipment in fourth year	$	35,000

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The working capital will be released at the end of the project and the companys required rate of return is 14%. The net present value of the project is closest to:

Multiple Choice

• $54,620.

• $(50,320).

• $64,520.

• $80,520.