Adolph Inc is considering adding a new product to their sales offerings. The initial cost would be $19,900. The product is expected to have a 3 year life and produces net cash flows of $4,500, $7,200 and $11,400 at the end of each of 3 years respectively. What is the net present value of this product at a discount rate of 13%?

a) -$3,607

b) -$2,378

c) $1,037

d) $1,418