Assume the following information for a capital budgeting proposal with a five$-$year time horizon:

Initial investment:

Cost of equipment $($zero salvage value$)$

$$540,000$

Annual revenues and costs:

Sales revenues

Variable expenses

Depreciation expense

Fixed out$-$of$-$pocket costs

$$300,000$

$$130,000$

$$50,000$

$$40,000$

Click here to view Exhibit $148$ and Exhibit $14$B$-2$ to determine the appropriate discount factor$($s$)$ using the tables provide

If the company's discount rate is $12\%,$ then the net present value for this investment is closest to:

Multiple Choice

$$251,600.$

$$(151,600).$

$$(251,600).$