UNT Manufacturing, Inc. is considering an investment project that requires the purchase of a fabricating machine that will cost $4.74 million. Sales are projected to be $3 million per year for the next five years. The equipment will be fully depreciated straight-line by the end of year 5. Cost of goods sold (not including depreciation) are predicted to be 40% of sales. The equipment can be sold for $400,000 at the end of year 5. UNT will also need to add net working capital of $100,000 immediately. The net working capital will be recovered in full at the end of the fifth year. The machine will also cost $250,000 to ship and install in the firm's factory. Yearly general administrative expenses are expected to increase by 10% of sales. Assume the tax rate is 20% and the cost of capital is 8%. What is the NPV of this investment?

$775,639

$450,639

$348,751

None of the answers are correct

$615,931