Parks Corp. has been offered the following five-year contract to provide component parts for a large company: Initial in

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Parks Corp. has been offered the following five-year contract to
provide component parts for a large company:
Initial investment
$520,000
Working capital
$90,000
Cash cost of relining equipment at the end of the third
year
$40,000
Salvage value at the end of the project
$15,000
Expected life of the project
5 years
Discount rate
12%
Annual cash revenue from the component parts
$1,200,000 per year
Annual cash costs of the component parts sold, salaries,
etc.
$1,020,000 per year
The working capital would be released at the end of the project.
The net present value of the project is closest to:
(Note: if you use a financial calculator instead of the present
value table, the NPV value you get will be slightly different from
the correct choice due to rounding errors; please choose the option
that is closest to what you get.)
$69,955
$98,435
$18,925
$1,177,405