HaulinIt Towing Company is considering adding more tow trucks to its fleet. The cost of the new trucks is $150,000. The project will utilize the risk adjusted discount, the firm has a beta of 1.3, the risk free rate is 7% and the return in the market is 15%. Should Haulin It add the additional trucks if the expected increased revenues will be as follows?

Years Cash Flows

1 $80,000

2 $95,000

3 $110,000

Select one: a. No, the npv of the project is -$15,175.19 b. Yes, the npv of the project is $75,275.16 c. No, the npv of the project is -$9,765.12 d. Yes, the npv of the project is $55,050.92