Mr. Woody, the CEO of Woodstock Wood Chippers, Inc. believes that the firm could create additional value by adding stump grinders to its product mix. Machinery used in producing the stump grinders would cost $16,500,000. According to Woodridges projections, the subsequent net cash flows the company would generate for the investors if it entered the stump grinder business would be $2,280,000 per year for 12 years. These are the only cash flows expected. The firms annual weighted average cost of capital for a project of this type is 8.6%. QUESTION: What is the NET PRESENT VALUE (NPV) of the stump grinder project?

A. $16,660,669.33

B. $1,286,910.00

C. $160,669.33

D. $10,368,895.46

E. $4,035,263.71