A Proposed Project Lasts Three Years and Has an Initial

A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash flows are estimated at $60,000 for year 1, $120,000 for year 2, and $135,000 for year 3. The firm has a target debt/equity ratio of 1.2. The firm's cost of equity is 14% and its cost of debt is 9%. The tax rate is 34%. What is the NPV of this project?

A) -$12,370
B) $13,687
C) $37,723
D) $46,120
E) $57,185