The Bruin's Den Outdoor Gear is considering a new $6-$year project to produce a new tent line. The equipment necessary would cost $$1\mathrm{.}25$ million and be depreciated using straight$-$line depreciation to a book value of zero. At the end of the project, the equipment can be sold for $15$ percent of its initial cost. The company believes that it can sell $22,500$ tents per year at a price of $$62$ and variable costs of $$23$ per tent. The fixed costs will be $$375,000$ per year. The project will require an initial investment in net working capital of $$185,000$ that will be recovered at the end of the project. The required rate of return is $10\mathrm{.}5$ percent and the tax rate is $40$ percent. What is the NPV$?$

Multiple Choice

$$548,970$

$$463,572$

$$380,197$

$$819,368$

Multiple Choice

$$548,970$

$$463,572$

$$380,197$

$$819,368$

$$318,368$