Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $162,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $102,000, variable costs of $27,500, and fixed costs of $12,100. The project will also require net working capital of $2,700 that will be returned at the end of the project. The company has a tax rate of 25 percent and the project's required return is 10 percent. What is the net present value of this project?

Multiple Choice

A. $9,091

B. $11,744

C. $12,728

D. $9,917

E. $10,831