A capital investment project requires an investment of $100,000 and has an expected life of four years. Annual cash flows before depreciation and taxes at the end of each year are expected to be as follows:

Year

Amount

1

$40,000

2

$48,000

3

$52,000

4

$46,000

The asset will be depreciated under MACRS 3-year property.The company's tax rate is 30%.The net present value of the project using a 8 percent discount rate is

a.$28,519

b.$20,133

c.$53,280

d.$22,223

e.$14,880