Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. The project will require purchasing an equipment that costs $90,000. It will be depreciated using straight-line methods with a useful life of 3 years and salvage value of zero. In each of the next three years, the revenue will increase by $150,000 with the new project, and cost of goods sold will increase by $75,000. Tax rate is 40%What is the net present value of this project ?

a. $39,815

b. $46,904

c. $61,327

d. $58,723