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

Initial investment:

Cost of equipment $($zero salvage value$)$ $ $520,000$

Annual revenues and costs:

Sales revenues $ $300,000$

Variable expenses $ $130,000$

Depreciation expense $ $50,000$

Fixed out$-$of$-$pocket costs $ $40,000$

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ to determine the appropriate discount factor$($s$)$ using the tables provided.

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

Multiple Choice

$$231,600.$

$$(131,600).$

$$(231,600).$

$$(51,350).$