You are evaluating a project for XYZ Inc. You estimate the sales price to be $400 per unit and sales volume to be 1,000 units in year 1, 1,250 units in year 2 , 1,325 units in year 3. The project has a three year life. Variable costs amount to $ 225 per unit and fixed costs are $ 100,000 per year. The project requires an initial investment of $ 165,000 which is depreciated straight line to zero over the three year project life. The actual market value of the initial investment at the end of year 3 is $ 35,000. Initial net working capital investment is $ 90,000. The increase in net working capital will revert back to normal at the end of the project's life. The tax rate is 34 % and the required return on the project is 12%.

4- What is the NPV of this project?

A) $27,873

B) $39,045

C) $46,756

D) $55,373

E) $63,765