Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $684,000 that would be depreciated on a straight-line basis to zero over the 6-year life of the project. The equipment will have a market value of $182,000 at the end of the project. The project requires $52,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $165,300 a year. What is the net present value of this project if the relevant discount rate is 14 percent and the tax rate is 25 percent?

$7,325

$16,290

$15,126

$11,486

$13,614