Santana Company is considering investing in a project that will cost $151,000 and have no salvage value at the end of its 5-year life. It is estimated that the project will generate annual net incomes of $40,000 each year. The company requires a 9% rate of return and uses the following compound interest table: Present Value of an Annuity of 1 Period 6% 8% 9% 10% 11% 12% 15% 5 4.212 3.993 3.890 3.791 3.696 3.605 3.352

Compute the net present value Select one: a. Net present value $122,078 b. Net present value $5,600 c. Net present value $4,600 d. Net present value $120,078