Welti Corporation has provided the following information concerning a capital budgeting project:

After-tax discount rate	13%
Tax rate	40%
Expected life of the project	4
Investment required in equipment	$140,000
Salvage value of equipment	$0
Annual sales	$325,000
Annual cash operating expenses	$115,000

The company uses straight-line depreciation on all equipment; the annual depreciation expense will be $35,000. 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.)

> $276,360

> $166,544

> $420,000

> $416,360