Glaze Manufacturing Company (GMC) is considering an opportunity to invest in a new piece of equipment. The equipment costs $67,000 with $47,000 due on the date of purchase and the remaining $20,000 due at the end of year three. The equipment is expected to have a 4 year useful life. GMC's accountant has developed the following cash flow information regarding the equipment.

Purchase price of the equipment due up front	$	47,000
Remaining balance due at end of year 2	$	20,000
Additional working capital required immediately upon purchase		6,700
Salvage value		18,500
Incremental income per year		23,500
Working capital recovery at end of useful life	$	6,700

Assuming a required (desired) rate of return of 8%, the net present value of this investment opportunity is (Use the PV of $1 and PVA of $1 tables) (Round intermediate and final answer to the nearest whole dollar.)

Multiple Choice

• $25,511.

• $70,847.

• $96,358.

• $235,609.