Lindsey M. is analyzing a project and has determined that the initial cost will be $1,280,000 and the required rate of return needs to be 15 percent. The project has a 60 percent chance of success and a 40 percent chance of failure. If the project fails, it will generate an annual after-tax cash flow of $270,000. If the project succeeds, the annual after-tax cash flow will be $642,000. She has further determined that if the project fails, she will shut it down after the first year and lose all of her original investment. If however, the project is a success, she can expand it with no additional investment and increase the after-tax cash flow to $682,000 a year for Years 2-5. At the end of Year 5, the project would be terminated and have no salvage value. What is the expected net present value of this project at Time 0?

		$164,745.34
		$155,216.92
		$173,217.88
		$186,720.33
		$149,317.28