Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $685,000 that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will have a market value of $180,000 at the end of the project. The project requires $50,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $215,900 a year. What is the net present value of this project if the relevant discount rate is 15 percent and the tax rate is 23 percent? $10,771 $9,088 $12,889 $11,968 $10,778