Bedford Company Ltd. operates a commercial fleet of fishing vessels off the southern shore of Nova Scotia. Bedford is considering a proposal to do some of its routine maintenance work itself rather than contracting out all of its maintenance. The proposal will require Bedford to buy a $300,000 machine that will be depreciated over its three-year useful life on a straight-line basis to a market salvage value of $50,000. Bedford will also need to make an initial investment in additional inventory of $75,000. The proposal is expected to result in pre-tax savings to the company of $200,000 per year. Bedford's tax rate is 20%, its cost of capital is 16%, and the applicable CCA rate on the machine is 25%. The equipment qualifies for the Accelerated Investment Incentive and 1.5 times the CCA in the year of acquisition. Assume that there is a positive UCC balance remaining after the deduction of the proceeds on salvage. Based on this information, what is the NPV of the project?

a) $51,577

b) $99,626

c) $107,438

d) $189,462