Wilson, Inc., is considering a new four$-$year expansion project that requires an initial fixed asset investment of $$1,875,000.$ The fixed asset will be depreciated straight$-$line to zero over its four$-$year tax life, after which time it will be worthless.$$ The project is estimated to generate $$2,040,000$ in annual sales, with costs of $$1,235,000.$ If the tax rate is $35\%,$ and the required return on the project is $12\%,$ what is the project's NPV$?$

Hint: Use Tax Shield Approach to calculating Operating Cash Flow formula learned in Module Three.

Question $28$ options:

$$212,608\mathrm{.}17$

$$771,875$

$$2,087,608\mathrm{.}17$

$$44,469$

$-$$$12,608\mathrm{.}17$