Revenue

140000

400000

400000

300000

Cost of Goods Sold

-70000

-200000

-200000

150000

Gross Profit

70000

200000

200000

150000

Selling, General and Admin

-6000

-6000

-6000

-6000

Depreciation

-80000

-80000

-80000

-80000

EBIT

-16000

114000

114000

64000

Income tax (35%)

5600

-39900

-39900

-22400

Incremental Earnings

-21600

74100

74100

41600

Capital Purchaes

-280,000

Change to NWC

-5,000

-5,000

-5,000

-5,000

A garage is installing a new"bubble-wash" car wash. It will promote the car wash as a fun activity for thefamily, and it is expected that the novelty of this approach will boost sales in the medium term. If the cost of capital is 8%, by using the data in the tableabove, calculate the net present value(NPV) of this project.

A.

$147,906

B.

$127,737

C.

$121,014

D.