XYZ Corp. has a project that sells 18,000 units of product X a year at $5.08 per unit. Its capital equipment costs $48,800 and is depreciated straight-line over 10 years with no salvage value. Its variable costs are 10.20% of sales and fixed costs are $32,100 per year. The required return is 10.80% and the tax rate is 35%. Assume there is no impact on working capital. What is the NPV of the project?

a.

$248,225

b.

$125,428

c.

$154,410

d.

$190,415

e.

$173,249