Kerfuffle Corporation is considering the purchase of a new computer system. The cost for the new system, net of set-up and delivery costs, will be $1.6 million. The new system will provide annual before-tax cost savings of $500,000 for the next five years. The increased efficiency of the new system will lower net working capital by $200,000 today. The CCA rate on the new system will be 30%. At the end of five years, the system can be salvaged for $100,000. The firm's required rate of return is 15%, and its marginal tax rate is 35%. What is the NPV of this cost-cutting project?

I did this...=((1600000/(0.15+0.3))*((1 + (0.5*0.15)) / (1 + 0.15))) - (((100000*0.3*0.35) / (0.15+ 0.3)) / (1 + 0.15)^5)

3312070.71

but the answers are

Select one:

a. -$224,011.86

b. -$22,882.55

c. $15,174.10

d. $76,552.80

e. $563,744.59