Exclusive Fashions Pty Ltd Is Considering Establishing a New High-

Exclusive Fashions Pty Ltd is considering establishing a new high- end retail fashion outlet in Double Bay,Sydney.The outlet will be established in a vacant building owned by the company.Ms Chevalier de Grammont,the CEO of Exclusive Fashions,expects the initial outlay for refurbishment and stock to total $3,450,000.None of the initial outlay can be depreciated for tax purposes.The outlet is forecast to turnover $1,580,000 per year in EBDIT for the next 7 years.At that time the outlet will be sold to a third party for an estimated $2,500,000.The building in which the outlet will be housed was purchased by Exclusive Fashions 6 years ago for $2,750,000 and has been fully depreciated for tax purposes.If Exclusive is subject to a tax rate of 30% and has a cost of capital of 15% p.a. ,what is the NPV of this project?

A) $4,063,305.78
B) - $4,551,603.06
C) $1,151,424.23
D) $1,809,314.05