3. Given the following information, calculate the net present value:

Initial outlay is $50,000; required rate of return is 10%; current prime rate is 12%; and cash inflows at the end of the next 4 years are $60,000, $30,000, $40,000, and $50,000.

a. $87,734

b. $93,542

c. equal to 0

d. less than 0