A project requires an initial investment in equipment of $100,000 and an initial investment in working capital of $15,000 (at t = 0). The project will produce sales of $150,000 per year, with costs at 60 percent of revenues for three years. The equipment depreciates using the following schedule: (t = 1, 33%); (t = 2: 45%); (t = 3: 22%). At the end of the project, the firm can sell the equipment for $12,000 and also recover the investment in net working capital. The corporate tax rate is 21 percent and the cost of capital is 15 percent. Assume all revenues and costs occur at year-end (i.e., t = 1, t = 2, and t = 3). Calculate the NPV of the project.

a) $15,667

b) $11,966

c) $25,530

d) $30,667