Jasper Metals Is Considering Installing a New Molding Machine Which

Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 a year for 7 years.At the beginning of the project,inventory will decrease by $16,000,accounts receivables will increase by $21,000,and accounts payable will increase by $15,000.All net working capital will be recovered at the end of the project.The initial cost of the molding machine is $249,000.The equipment will be depreciated straight-line to a zero book value over the life of the project.The equipment will be salvaged at the end of the project creating a $48,000 aftertax cash flow.At the end of the project,net working capital will return to its normal level.What is the net present value of this project given a required return of 14.5 percent?

A) $77,211.20
B) $79,418.80
C) $82,336.01
D) $84,049.74
E) $87,925.54