Glaze Manufacturing Company (GMC) is considering an opportunity to invest in a new piece of equipment. The equipment costs $50,000 with $30,000 due on the date of purchase and the remaining $20,000 due at the end of year three. The equipment is expected to have a 5 year useful life. GMC's accountant has developed the following cash flow information regarding the equipment.

Purchase price of the equipment due up front	$	30,000
Remaining balance due at end of year 3	$	20,000
Additional working capital required immediately upon purchase		5,000
Salvage value		10,000
Incremental income per year		15,000
Working capital recovery at end of useful life	$	5,000

Assuming a required (desired) rate of return of 12%, the net present value of this investment opportunity is

a) $13,347.

b) $49,236.

c) $62,583.

d) $180,223.