DeVault Services recently hired you as a consultant to help with its capital budgeting process. The company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

Risk-adjusted cost of capital 10.0%

Net investment cost (depreciable basis)$65,000

Straight-line deprec. rate 33.3333%

Sales revenues, each year$65,500

Operating costs (excl. deprec.), each year$25,000

Tax rate 25.0%

a.$34,515

b.$38,243

c.$36,331

d.$42,375

e.$40,256