Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $693,000 that would be depreciated on a straight-line basis to zero over the 5-year life of the project. The equipment will have a market value of $190,000 at the end of the project. The project requires $60,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $164,500 a year. What is the net present value of this project if the relevant discount rate is 10 percent and the tax rate is 35 percent?

a) -$15,477

b) -$19,753

c) -$13,929

d) -$18,343

e)-$16,508