Consider the case of Rydell Engineering:

Rydell Engineering is evaluating a proposed capital budgeting project that will require an initial investment of $124,000. The project is expected to generate the following net cash flows:

Year	Cash Flow
Year 1	$38,200
Year 2	$50,600
Year 3	$45,300
Year 4	$42,400

Assume the desired rate of return on a project of this type is 10%. What is the net present value of this project? (Note: Do not round your intermediate calculations.)

A) $26,719.70

B) $15,358.30

C) $15,539.79

D) $7,505.40

Suppose Rydell Engineering has enough capital to fund the project, and the project is not competing for funding with other projects. Should Rydell Engineering accept or reject this project?

A) Reject the project

B) Accept the project