A project has an annual rate of return of 15%. The project cost $120,000, has a 5 year useful life, and no salvage value. Straight-line depreciation is used. The annual net income, exclusive of depreciation, was

a) $47,700 B) $42,000 C) $33,000 D) $18,000

(It would really help if you would show your work as I would like to learn how to solve the problem and not just get the answer.)