Cromwell Industries Is Considering a New Project Which Will Have

$\begin{array}{lrrr}&\text { Year 0 } &\text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\text { Revenues } && 800,000 & 800,000 & 800,000 \\\text { Costs of Coods Sold } && -320,000 & -320,000 & -320,000\\\hline\text { Gross Profit } && 480,000 & 480,000 & 480,000 \\\text { Selling. General and Admin } & &-105,000 & -105,000 & -105,000 \\\text { Depreciation } && -200,000 & -200,000 & -200,000\\\hline\text { EBIT } && 175,000 & 175,000 & 175,000 \\\text { Income tax }(30 \%) && -52,500 & -52,500 & -52,500\\\hline\text { Incremental Earnings } && 122,500 & 122,500 & 122,500\\\\\text { Capital Purchases } &-600,000\\\text { Changes to NWC }&&-12,000 &-12,000 &-12,000\\\end{array}$ Cromwell Industries is considering a new project which will have costs, revenues, etc. as shown by the data above. If the cost of capital is 8.5%, what is the net present value (NPV) of this project?

A) -$278,832
B) -$153,046
C) $300,691
D) $254,320