Tire City Co. is considering spending $16,000 at Time 0 to test a new product. Depending on the test results, the firm may decide to spend $60,000 at Time 1 to start production of the product. If the product is introduced and it is successful, it will produce aftertax cash flows of $47,000 a year for Years 2 through 4. The probability of successful test and investment is 62 percent. What is the net present value at Time 0 given a 14 percent discount rate? (show work please)

$9,432.16

$9,707.80

$10,305.43

$10,712.59

$11,298.00