The Sausage Hut Is Looking at a New Sausage System

The Sausage Hut is looking at a new sausage system with an installed cost of $438,000.This cost will be depreciated straight-line to zero over the project's four-year life,at the end of which the sausage system can be scrapped for $69,000.The sausage system will save the firm $129,000 per year in pretax operating costs,and the system requires an initial investment in net working capital of $29,000,which will be recouped at project end.If the tax rate is 35 percent and the discount rate is 9 percent,what is the NPV of this project?

A) -$18,870
B) -$6,320
C) $2,560
D) $14,410
E) $26,880