A 3-year project has a contribution margin of $16, projected fixed costs of $120,000, a projected variable cost per unit of $12, straight-line depreciation for 3 years of $60,000 (per year), and a projected present value break-even point of 13,601.20 units. The tax rate is 34 percent and the discount rate is 13 percent. What is the equivalent annual cost?

A.

$24,828.67

B.

$37,619.20

C.

$58,624.28

D.

$84,828.67

E.

$200,293.44