1. Gateway Communications is considering a project with an initial fixed assets cost of $1.53 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 $242,000. The project will not change sales but will reduce operating costs by $403,000 per year. The tax rate is 40 percent and the required return is 11.7 percent. The project will require $53,000 in net working capital, which will be recouped when the project ends. What is the project's NPV?
   1. $193,327
   2. $207,762
   3. $201,060
   4. $159,906