You are considering adding a new item to your company's line of products. The machine required to manufacture the item costs $$7000$ and it depreciates straightline over $4$ years. The new item would require a $$500$ increase in inventory and a $$300$ increase in accounts payable. You plan to market the items for three years and then sell the machine for $$400.$ You expect to sell $1300$ items per year at a price of $$4\mathrm{.}50.$ You expect manufacturing costs to be $$1\mathrm{.}25$ per item. If the tax rate is $35\%$ and your weighted average cost of capital is $11\%$ per year, what is the net present value of selling the new item?

$$1,600$

$$2,248$

$$1,792$

$$2,007$

$$1,429$