We project unit sales for a new household$-$use laser$-$guided cockroach search and destroy system as follows:

Year Unit Sales

$194,500$

$2106,500$

$3129,500$

$4135,500$

$588,500$

The new system will be priced to sell at $$410$ each.

The cockroach eradicator project will require $$1,700,000$ in net working capital to start, and total net working capital will rise to $15\%$ of the change in sales. The variable cost per unit is $$280,$ and total fixed costs are $$1,200,000$ per year. The equipment necessary to begin production will cost a total of $$16$ million. This equipment is mostly industrial machinery and thus qualifies for CCA at a rate of $20\%.$ In five years, this equipment will actually be worth about $20\%$ of its cost.

The relevant tax rate is $35\%,$ and the required return is $16\%.$ Based on these preliminary estimates, what is the NPV of the project?

a$.30,101,489$

b$.26,438,361$

c$.12,042,291$

d$.14,438,008$

e$.15,071,714$

f$.11,408,585$