Lake Company is evaluating a capital expenditure proposal that has the following predicted cash flows:

Initial investment	$90,220
Operation
Year 1	41,280
Year 2	60,000
Year 3	20,000
Salvage value	-

The present value factors of $1 for different rates of return are as follows:

Present Value of $1
Period	12%	14%	16%	18%
1	0.89286	0.87719	0.86207	0.84746
2	0.79719	0.76947	0.74316	0.71818
3	0.71178	0.67497	0.64066	0.60863
4	0.63552	0.59208	0.55229	0.51579

Given a discount rate of 14 percent, determine the net present value of the investment proposal.

Select one:

a. $80,000

b. $5,658

c. $95,878

d. $90,220