Professional poker players, Lisa and Lily own a company that faces a 40% tax rate and uses a 12% discount rate. They just invested $689,000 in equipment for the gambling app Gamblr that would be depreciated on a straight-line basis to zero over the 6-year life of the project. The equipment will be salvaged for $188,000 at the end of the project. Lisa and Lily know that the project's operating cash flow will be $154,200 per year. What is the NPV of this project if it requires $58,000 initially for net working capital, which will be recovered at the end of the project?

(select one)

• $31,394

• $26,488

• $33,809

• $28,254

• $23,840