Suppose you work for Kam Steel Corporation as a financial manager. Kam Steel Corporation is looking at a new production system with an installed cost of $560,000. Kam Steel Corporation paid $5,000 Lawyer's fees when land was purchased to operate production plant. The equipment is depreciated at a rate of 20% per year (class 8) over the project's five-year life, at the end of which equipment can be sold for $85,000. The new equipment will save the firm $165,000 per year in pre-tax operating costs, and the new production system requires an initial investment in net working capital of $39,000. If the tax rate is 34% and the discount rate is 10%, what is the net present value (NPV) of this project?

Group of answer choices

None of the given answers is correct

9,000.00

7,800.25

-6,413.99

-6,197.89