XYZ Corporation is considering an expansion project. To date they have spent $63,300 investigating the viability of the project and have decided to proceed. The CEO of XYZ spent $24,500 last year on his business trip to New York where he discussed about the proposed new project with the board members. The company spent $46,500 on a marketing study before its current analysis regarding whether to accept or reject the project. The proposed project will cost $908,000.00. It will also cost additional $11,400.00 for shipping and installation. The project will be depreciated over a 3 year MACRS class life. XYX would use the 3-year MACRS method to depreciate the machine and equipment which are 33.33%, 44.45%, 14.81%, and 7.41%.

If the project is undertaken the company will need to increase its inventories by $43,100, and its accounts payable will rise by $6,300. The company will realize an additional $911,450.00 in sales over each of the next three years. The companys operating costs (not including depreciation) will increase by $350,512.00 a year. Both sales and the operating cost are expected to grow 3.35% annually during the life of the project. The companys tax rate is 33.00%. At t = 3, the projects economic life is complete, but it will have a salvage value (before-tax) of $97,000.00 after three years. The projects WACC is 9.25%. What is the projects net present value (NPV)?

Please show work

A) $399,178.60

B)$384,922.22

C)$374,229.94

D) $356,409.47

E)$352,845.37