Pioneer Agro is considering installing a new extractor and grinding machine wh

Pioneer Agro is considering installing a new extractor and grinding machine which is expected to produce operating cash flows of $73000 a
year for 7 years. At the beginning of the project inventory will decrease by $16000 accounts receivables will increase by $21000 and accounts payable will
increase by $15000. All net working capital will be recovered at the end of the project. The initial cost of the machine is $249000. 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 $48000
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. $77211.20
B. $79418.80
C. $82336.01
D. $84049.74
E. $87925.54