Question 5. (in-class example) GM has just designed a new Saturn. It forecasts sales of 200,000 cars per year at an average price of $18,000. Costs are expected to be $17,000 / car. The model will sell for 4 years and GM expects an inventory of 40,000 cars. The cost of capital is fixed at 10%/year. What is the NPV of the project (choose the most accurate answer)?

$680,000

$800,000

$880,000

$1,280,000

None of the above

Continue from question 5). If the corporate income tax rate is 21%, what would be the project's NPV?