Snowbowl Resorts wants to create more snowmaking capacity on their ski mountain. This increase in capacity requires the purchase of additional snow-making equipment that will cost $697,000. Based on input from the Accounting Department, this would be depreciated on a straight-line basis to zero over the 5-year life of this new snowmaking project. When the project is over, the equipment can be sold for $192,000. There is a need for additional net working capital at the beginning of the project in the amount of $62,000. This will be recovered at the end of the project. The operating cash flow will be $187,600 a year. Assume the appropriate discount rate is 14 percent and that the appropriate tax rate is 35 percent. What is the net present value of this snowmaking project?

• $17,936

• $22,893

• $16,142

• $19,132

• $21,257