Time left $0$:$44$:$43$

Mountain Gear Co$.$ is considering a project with an initial cost of $$2,872,000$ which will be depreciated straight$-$line to a zero book value over the $10-$year life of the project. At the end of the project the equipment will be sold for an estimated $$300,000.$ The project will not directly produce any sales but will reduce operating costs by $$714,000$ a year. The tax rate is $21$ percent. The project will require $$52,000$ of inventory which will be recouped when the project ends. What is the net present value at the required rate of return of $12$ percent?

Select one:

a$.$ $$696,891\mathrm{.}32$

b$.$ $$170,475\mathrm{.}57$

c$.$ $$652,108\mathrm{.}10$

d$.$ $$702,414\mathrm{.}14$

e$.$ $$159,243\mathrm{.}47$