Parks Corp. has been offered the following five-year contract to provide component parts for a large company:

Initial investment	$520,000
Working capital	$90,000
Cash cost of relining equipment at the end of the third year	$40,000
Salvage value at the end of the project	$15,000
Expected life of the project	5 years
Discount rate	12%
Annual cash revenue from the component parts	$1,200,000 per year
Annual cash costs of the component parts sold, salaries, etc.	$1,020,000 per year

The working capital would be released at the end of the project. The net present value of the project is closest to:

(Note: if you use a financial calculator instead of the present value table, the NPV value you get will be slightly different from the correct choice due to rounding errors; please choose the option that is closest to what you get.)

$69,955

$98,435

$18,925

$1,177,405