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Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $$61,000$ per year for $7$ years. At the beginning of the project, inventory will decrease by $$20,800,$ accounts receivables will increase by $$23,400,$ and accounts payable will increase by $$16,800.$ At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $$267,000.$ The equipment will be depreciated straight$-$line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $$60,000.$ What is the net present value of this project given a required return of $10\mathrm{.}6$ percent?

Multiple Choice

$$61,022$

$$61,272$

$$58,369$

$$72,862$

$$69,523$