Investment research analysts cli; red Lactolerant, Inc. as a "cash cow" because it pays out all of its earnings as

dividends. But Lactolerant has recently developed a new packing technology that could provide good revenue

growth potential, allowing the firm to earn a $9\%$ return on retained earnings in future years, that is$,$ it will

generate a $9\%$ return on its whole business going forward $($not just the reinvested earnings$).$ The new

technology, however, will require continuing investment. To pay this ongoing financial obligation, Lactolerant's

Board is considering a proposal to reduce its dividend payout ratio immediately from $100\%$ to $35\%($in other

words, increasing its earnings retention rate from $0\%$ to $65\%).$ Current $(t=0)$ earnings and dividends are

$$315,000.$ Investors are expecting$-$and currently earning$-$a return of $12\%$ overall return.

In light of this, what is the Lactolerant NPVGO? $($Hint: Find the value of Lactolerant as it is today, without the new

growth trajectory.$)$

$-$$$581,484$

$-$$$474,598$

$-$$$727,445$

$$104,230$

$$540,067$