Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $655,000 that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will have a market value of $171,000 at the end of the project. The project requires $41,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $179,800 a year. What is the net present value of this project if the relevant discount rate is 11 percent and the tax rate is 34 percent?

a. $33,145

b. $43,648

c. $39,283

d. $36,828

e. $47,005