The following information concerning a proposed capital budgeting project has been provided by Wick Corporation: Click here to view Appendix 13B - Exhibit 13B-1 to determine the appropriate discount factor(s) using tables. http://lectures.mhhe.com/connect/007802563x/exhibit_13b_1.jpg

Investment required in equipment	$168,000
Salvage value of equipment	$0
Working capital requirement	$24,000
Annual sales	$640,000
Annual cash operating expenses	$466,000
One-time renovation expense in year 3	$55,000

The expected life of the project is 4 years. The income tax rate is 35%. The after-tax discount rate is 12%. The company uses straight-line depreciation on all equipment and the annual depreciation expense would be $42,000. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.

The net present value of the project is closest to: (Round discount factor(s) to 3 decimal places, do not round intermediate calculations and round final answer to the nearest dollar amount.)

	$170,803
	$307,450
	$186,067
	$299,050