Your company is considering a machine that will cost $1000 at time 0 and which can be sold after 3 years for 105 dollars. to operate the machine, $200 must be invested at times 0 in inventories; these funds will be recovered when the machine is retired at the end of year 3. The machine will produce sales revenues of $900 per year for 3 years; variable operating costs (excluding depreciation) will be 50% of sales. Operating cash inflows will begin one year from today (at Time 1). the machine will have depreciation expenses a $500, $300, and $200 in years 1, 2, and 3, respectively. The company has a 40% tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project's income is negative, and a 10% required rate of return. Inflation is zero. What is the project's NPV?

A. $6.24

B. $7.89

C. $8.87

D. $9.15

E. $10.14