Lebron Shoe Design Company is evaluating expanding with 5 new stores and estimates it will cost $200,000 to make tenant improvements in the five stores before opening and then the five stores will generate in total cash flow net of expenses of $75,000 per year over the 7-year life of the store leases. Assuming the company uses a 10.0% required return based on the CAPM to evaluate such projects, what is the estimated net present value of the capital expansion proposal?

Options are

$310,762

$365,131

$165,131

$325,000