Net Present Value of New Product Line

A corporation is considering the launch of a new product line, projected to generate cash flows for the next five years. The initial investment required for the project is $500,000. The expected cash flows for the product line are as follows:

• Year 1: $150,000
• Year 2: $180,000
• Year 3: $200,000
• Year 4: $250,000
• Year 5: $300,000

The company has a weighted average cost of capital (WACC) of 10%. Given that the product line will incur additional working capital of $50,000 at the start of Year 1, the company wishes to calculate the net present value (NPV) of the project to decide whether or not to proceed with the investment. Which of the following results correctly represents the NPV of this project?