Keyser Mining is considering a project that will require the purchase of $980,000 in new

equipment. The equipment is in a seven-year MACRS class. The equipment can be scrapped at

the end of the project for 5 percent of its original cost. Annual sales from this project are

estimated at $420,000. Net working capital equal to 20 percent of sales will be required to support

the project. All of the net working capital will be recouped. The required return is 16 percent and

the tax rate is 35 percent. What is the recovery amount attributable to net working capital at the

end of the project?