Wet'n'Wild Water Company Provides White Water Rafting Experiences to Outdoor

Wet'n'Wild Water Company provides white water rafting experiences to outdoor enthusiasts.The company is in the process of analysing the purchase of new inflatable rafts and jet boats.Information on the proposal is provided below.

$\begin{array}{lr}\text {Initial investment:}\\\text { Asset } & \$ 130000 \\\text { Working capital } & \$ 32000 \\\text { Operations (per year for four years) : } & \\\text { Cash receipts } & \$ 150000 \\\text { Cash expenditures } & \$ 88000\\\text { Disinvestment: } \\\quad \text { Salvage value of drill (existing) } & \$ 10000 \\\text { Discount rate } & 20 \%\end{array}$
What is the net present value of the investment? Assume there is no recovery of working capital.

A) $(2140)
B) $8456
C) $86 336
D) $42 362