Forise Water Company drills small commercial water wells. The company is in the process of analyzing the purchase of a new drill. Information on the proposal is provided below.

Initial investment:

Asset $690,000

Working capital $168,000

Operations (per year for four years):

Cash receipts $450,000

Cash expenditures $210,000

Disinvestment: Salvage value of drill (existing)$140,000

Discount rate: 12%

What is the net present value of the investment?

A. $240,000

B. $179,120

C. $ (168,000)

D. $11,120