Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $199,000 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 $136,000, variable costs of $36,700, and fixed costs of $12,950. The project will also require net working capital of $3,550 that will be returned at the end of the project. The company has a tax rate of 34 percent and the project's required return is 9 percent. What is the net present value of this project?

Multiple Choice

• $39,400

• $42,928

• $40,646

• $36,116

• $41,892