Gateway Communications is considering a project with an initial fixed assets cost of $1.70 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $228,000. The project will not change sales but will reduce operating costs by $381,500 per year. The tax rate is 34 percent and the required return is 10.3 percent. The project will require $46,000 in net working capital, which will be recouped when the project ends.

What is the project's NPV?

Multiple Choice

$205,742

$251,991

$196,797

$243,863

$234,483