You are considering opening a new shop with an initial investment of $120,000. The investment horizon is 3 years. You will use a 3-year straight-line depreciation schedule, with an ending book value of zero for your assets. The market salvage value for the assets at the end of the project is $30,000. The initial working capital requirement is $12,000 and the working capital remains to be $12,000 each year. You expected to generate the revenues of $100,000 with the costs of $40,000 each year during the 3-year time period. The tax rate is 21%. Compute the net present value (NPV) for this investment using the required return of 10%.

		$28,429.10
		$33,708.63
		$31,149.92
		$26,482.90