Valley Winery is considering expanding its wine-making operations. The expansion will require new equipment costing $500,000 that would be depreciated on a straight-line basis to a zero balance over the 5-year life of the project. The estimated salvage value is $80,000. The project requires $60,000 for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $200,000 a year. What is the net present value of this project if the relevant discount rate is 12 percent and the tax rate is 21 percent? $274,273.78 $253,623.81 $295,365.91 $230,862.23