Please solve the question with clear working and explanations. Answer for the question is E.

Burress Beverages is considering a project where they would open a new facility in Seattle, Washington. The company's CFO has assembled the following information regarding the proposed project: It would cost $500,000 today (att=0) to consfructthe new facility. The cost ofthe facility will be depreciated on a straight-line basis over five years. Ifthe company opens the facility, it will need to increase its inventory by $100,000 at t = 0. $70,000 of this inventory will be financed with accounts payable. The CFO has estimated that the project will generate the followmg amountofrevenue over the next three years: Year I Revenue = $1.0 million Year 2Revenue = $1.2 million Year 3Revenue = $1.5 million Operating costs excluding depreciation equal 70 percent of revenue. The company plans to abandon the facility after three years. At t = 3, the project's estimated salvage value will be3D(). At t = 3, the company will also recover the net operating working capital investment that it made at t = 0. The project's cost of capital is 14 percent. The company's tax rate is 40 percent. What is the project's net present value (NPV)? A. B. c. D. E. $ 69,207 $178,946 $286,361 $170,453 $224,451