29. Gateway Communications is considering a project with an initial fixed asse

29. Gateway Communications is considering a project with an initial fixed asset cost of $2.46 million which will be depreciated straight-line
to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $300000. The project will not
directly produce any sales but will reduce operating costs by $725000 a year. The tax rate is 35 percent. The project will require $45000 of inventory which
will be recouped when the project ends. Should this project be implemented if the firm requires a 14 percent rate of return? Why or why not?
A. No; The NPV is -$172937.49.
B. Yes; The NPV is $387516.67
C. Yes; The NPV is $251860.34
D. Yes; The NPV is $466940.57
E. No; The NPV is -$87820.48.

Please work problem out.