he ABC Co. is analyzing a project that has projected sales of $189,400 and costs of $102,300. The project requires an investment in inventory of $15,000 plus another $28,000 in accounts receivable. Fixed assets of $80,000 are needed and will be depreciated using the MACRS three year class. Accounts payable will increase by $36,000 . The increases in inventory, accounts receivable and account payable will revert back to normal at the end of the project's life. An interest expense of $11,000 will be incurred annually. The project has a life of 3 years. At the end of the three years, the equipment has an estimated market value of $26,000. The company requires a 10% rate of return and is in the 34% marginal tax bracket.

-What is the net present value of this project?

A) $69,985

B) $77,603

C) $86,214

D) $92,536

E) $96,885