Assume the following for a project under evaluation:

The project's life is 4 years.

The total time zero, initial cost of $55,000.

The total net operating cash flow each year is $15,000.

In addition to the terminal year operating cash flow, there is a nonoperating, terminal year cash flow of $8,000.

If the cost of capital for a project of this risk is 7%, what is the project's NPV? Accept or reject the project?

a.123,000; accept

b.13,000; accept

c.-56,911; reject

d.1,911; accept

e.13,355; accept