Ruby Winery is considering expanding its wine-making operations. The expansion will require new equipment costing $500,000 that would be depreciated on a straight-line basis to a zero balance over the 5-year life of the project. The estimated salvage value is $80,000. The project requires $50,000 for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $180,000 a year. What is the net present value of this project if the relevant discount rate is 10 percent and the tax rate is 21 percent?

Group of answer choices

a. $241,738.72

b. $223,630.83

c. $265,512.55

d. $202,629.91