1. XYZ is considering a project that would last for 3 years and have a cost of capital of 19.90 percent. The relevant level of net working capital for the project is expected to be $1,938.70 immediately (at year 0); $4,800.00 in 1 year; $13,800.00 in 2 years; and $0.00 in 3 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. The tax rate is 53.40 percent. What is the net present value of this project? .

   	Year 0	Year 1	Year 2	Year 3
   Revenue	$ 0.00	$11,700.00	$10,700.00	$10,400.00
   Costs	$ 0.00	$3,770.00	$3,770.00	$3,900.00
   Depreciation	$ 0.00	$2,170.00	$1,810.00	$2,900.00
   Cash flows from capital spending	$-6,600.00	$ 250.00	$ 870.00	$4,030.00

   		$3595.18 (plus or minus $10)
   		$7043.49 (plus or minus $10)
   		$-1156.14 (plus or minus $10)
   		$8754.03 (plus or minus $10)
   		None of the above is within $10 of the correct answer