Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $$69,500$ per year for $8$ years. At the beginning of the project, inventory will decrease by $$28,000,$ accounts receivables will increase by $$27,000,$ and accounts payable will increase by $$19,500.$ At the end of the project, net working capital will return to the levell it was prior to undertaking the new project. The initial cost of the molding machine is $$294,000.$ The equipment will be depreciated straight$-$line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating an eftertax cash flow of $$78\mathrm{.}000.$ What is the net present value of this project given a required return of $11\mathrm{.}5$ percent?

Mutiple Choice

$$101,936$

$$106,495$

$$117,634$

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