The management of SoComfy Hotel wishes to capitalize on an investment project that will cost the management to pay $85,000 as an initial cost. This project will take three years to finish with the net cash flows stream of $18,000 for the first year, $21,000 for the second year, and $22,500 for the third year. Should the management accept the project by analyzing the net present value (NPV) of the cash flow stream if they have 12.00% minimum required rate of return on the project?

a) NPV is $61,500 so accept the project

b) NPV is $36,172.44 so accept the project

c) NPV is $23,500 so reject the project

d) NPV is $36,172.44 so reject the project