Chadron Motors is considering a project with an initial fixed asset cost of $$2\mathrm{.}168$ million which will

be depreciated straight$-$line to a zero book value over the $10-$year life of the project. Ignore bonus

depreciation. At the end of the project the equipment will be sold for an estimated $$495,000.$ The

project will not directly produce any sales but will reduce operating costs by $$634,000$ a year. The

tax rate is $21$ percent. The project will require $$128,000$ of net working capital which will be

recouped when the project ends. What is the net present value at the required rate of return of $15\mathrm{.}3$

percent?

$$657,345\mathrm{.}35$

$$570,256\mathrm{.}69$

$$540,129\mathrm{.}12$

$$701,414\mathrm{.}14$

$$658,701\mathrm{.}15$