Gateway Communications is considering a project with an initial fixed assets cost of $$1\mathrm{.}55$ million that will be depreciated straight$-$line to a zero book value over the $9-$year life of the project. At the end of the project the equipment will be sold for an estimated $$240,000.$ The project will not change sales but will reduce operating costs by $$399,000$ per year. The tax rate is $21$ percent and the required return is $11\mathrm{.}5$ percent. The project will require $$52,000$ in net working capital, which will be recouped when the project ends. What is the project's NPV$?$

Selected Answer:

Incorrect

$$446,712$

Answers:

$$379,789$

$$429,530$

$$446,712$

Correct

$$397,053$

$$461,602$