Basta Corporation has provided the following data concerning an investment project that it is considering:

Initial investment | $ 780,000 | |
---|---|---|

Working capital | $ 94,000 | |

Annual cash flow | $ 268,000 | per year |

Salvage value at the end of the project | $ 26,000 |

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

The working capital would be released for use elsewhere at the end of the project in 4 years. The company’s discount rate is 8%. The net present value of the project is closest to:

▸ $101,816

▸ $126,726

▸ $32,726

▸ $318,000