Forise Water Company Drills Small Commercial Water Wells $\begin{array} { l l } \text { Asset } & \$ 600,000 \\ \text { Working capital } & \$ 128,000 \end{array}$

Forise Water Company drills small commercial water wells.The company is in the process of analyzing the purchase of a new drill.Information on the proposal is provided below. Initial investment:
$\begin{array} { l l } \text { Asset } & \$ 600,000 \\ \text { Working capital } & \$ 128,000 \end{array}$
Operations (per year for four years) :
$\begin{array}{lr}\text { Cash receipts } & \$ 450,000 \\\text { Cashexpenditures } & \$ 190,000\end{array}$
Disinvestment:
$\begin{array}{cr}\text { Salvage value of d rill (existing) } & \$ 50,000 \\\text { Discount rate } & 18 \%\end{array}$ What is the net present value of the investment? Assume there is no recovery of working capital.

A) $(124,280)
B) $21,400
C) $82,724
D) $149,400