XYZ is considering a project that would last for 3 years and have a cost of capital of 20.70 percent. The relevant level of net working capital for the project is expected to be $1,701.00 immediately (at year 0); $4,870.00 in 1 year; $15,700.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 52.90 percent. What is the net present value of this project? . Year 0 Year 1 Year 2 Year 3 Revenue $ 0.00 $10,000.00 $13,900.00 $12,400.00 Costs $ 0.00 $3,920.00 $3,510.00 $2,200.00 Depreciation $ 0.00 $1,860.00 $2,270.00 $2,100.00 Cash flows from capital spending $-7,030.00 $ 750.00 $1,780.00 $3,600.00

$10427.36 (plus or minus $10)

$7903.11 (plus or minus $10)

$470.17 (plus or minus $10)

$4763.59 (plus or minus $10)

None of the above is within $10 of the correct answer