Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $1.96 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.905 million in annual sales, with costs of $485,000. The tax rate is 21 percent. Suppose the required return on the project is 7 percent. What is the projects NPV?

Select one:

A. $1,256,087.76

B. $1,817,000.00

C. $949,515.68

D. 1,401,519.87

E. $1,344,013.90