Carson Company is considering investing in new equipment for its factory. The equipment will cost $180,000, is expected to last five years and would have no salvage value at the end of five years. The equipment is expected to generate cost savings of $46,000 per year in each of the five years. Carsons discount rate is 13%. What is the net present value of this equipment?

a. ($33,565).

b. ($18,218).

c. $27,138.

d. $50,000.