Hawkeye innovations is considering developing a new type of mouse trap. They have made the following estimates regarding the development of the new product.

• The life of the project is 7 years

• The project will require additional equipment that will cost $21,000. None of the equipment will have any salvage value

• Sales are expected to be 10,000 units per year at $4.50 per unit

• Variable costs are expected to be $2.60 per unit

• The annual depreciation expense would be $3,000

• Additional net working capital will be needed in year 0 in the amount of $8,000. 60% of this will be recovered in year 7

• The companies tax rate is 34%

• The required rate of return on this project is 10%

What is the projects Net Present Value?

A. $921.04

B. $3,328.22

C. $3,164.68

D. $8,921.04