Gateway Communications is considering a project with

an initial fixed assets cost of $$1\mathrm{.}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 $23$ percent

and the required return is $11\mathrm{.}7$ 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$?$

Multiple Choice

$$438,886$

$$388,585$

$$371,690$

$$422,006$

$$453,516$