Your firm has a marginal tax rate of 40% and a cost of capital of 14%. You are performing a capital budgeting analysis on a new project that will cost $500,000. The project is expected to have a useful life of 10 years, although its MACRS class life is only 5 years. The applicable MACRS depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. The project is expected to increase the firm's net income by $61,257 per year and to have a salvage value of $35,000 at the end of 10 years. What is the project's NPV?

a. $108,359

b. $ 95,356

c. $177,902

d. $162,185

e. $135,256