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

Initial investment: Cost of equipment (zero salvage value) $ 460,000

Annual revenues and costs: Sales revenues $ 300,000

Variable expenses $ 130,000

Depreciation expense $ 50,000

Fixed out-of-pocket costs $ 40,000

If the companys discount rate is 12%, then the net present value for this investment is closest to:

Multiple Choice

A. $171,600.

B. $(71,600).

C. $(171,600).

D. $8,650.