1.Maple Media is considering a proposal to enter a new line of business. In reviewing the prorposal, the company's CFO is considering the following facts:

-The new business will require the company to purchase additional fixed assets that will cost $600000 at t=0. For tax and accounting purposes, these costs will be depreciated on a straight-line basis over three years. (Annual depreciation will be $200000 per year at t=1,2,and3)

-At the end of three years, the company will get out of the business and will sell the fixed assets at a salvage value of $100000.

-The project will require a $500000 increase in net operating working capital at t=0, which will be recovered at t=3.

-the Company's marginal tax rate is 35 percent.

-The new business is expected to generate $2million in sales each year (at t=1,2, and 3). The operating costs excluding depreciation are expected to be $1.4 million per year.

-The projects's cost of capital is 12 percent.

What is the project's net present value(NPV)? A) 86885 B) 536697 C) 81243 D) 561609 E) 56331