Jared's Mat Stand wants to invest in a lathe to make their own mats. The cost of the lathe is $7,500. The net cash flows resulting from the investment are as follows: Year 1: $2,000; Year 2: $6,000; Year 3: $5,000; Year 4: $700. The companys cost of capital is 16.25%. Compute the NPV of the project.

Group of answer choices

$13,700.00

($2,226.21)

$2,226.21

$6,200.00