Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC	10.0%
Opportunity cost	$100,000
Net equipment cost (depreciable basis)	$65,000
Straight-line depr. rate for equipment	33.333%
Annual sales revenues	$128,000
Annual operating costs (excl. depr.)	$25,000
Tax rate	35%

a. $21,575

b. $20,353

c. $22,592

d. $21,168

e. $17,707