Helicopter Gear is planning to expand its product line, which requires investment of $557,900 in special-purpose machinery. The machinery has a useful life of seven years and no salvage value. The estimated annual results of offering the new products are as follows: Revenue $ 530,000 Expenses (including straight-line depreciation) (503,600) Increase in net income $ 26,900

All revenue from the new products and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes. Using a discount rate of 11%, what is the net present value of this proposed investment?

Note: An annuity table shows that the present value of $1 received annually for seven years, discounted at 11%, is 4.712. Round the final answer to nearest whole dollar.

a) ($106,600)

b) ($55,601)

c) ($502,298)

d) ($373,100)