Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8%, what is the net present value (NPV) of this project?

A. $326,083

B. $293,475

C. $309,779

D. $358,691

Year 0 Revenues Cost of Goods Sold Gross Profit Selling General and Admin Depreciation EBIT Income tax (20%) Incremental Earnings Year 1 800,000 -300,000 500,000 -110,000 -180,000 210,000 -42,000 168,000 Year 2 800,000 -300,000 500,000 -110,000 -180,000 210,000 -42,000 168,000 Year 3 800,000 -300,000 500,000 -110,000 -180,000 210,000 -42,000 168,000 -600,000 Capital Purchases Changes to NWC -12,000 -12,000 -12,000