A Project Requires the Purchase of Machinery for $40,000

A project requires the purchase of machinery for $40,000. The machinery belongs in a 20% CCA class and will have a salvage value of $4,000 at the end of the 4 year project. It will require a net
Working capital investment of $5,000 up-front. The firm has a tax rate of 34% and a required return
Of 10%. The project generates after-tax operating income of $10,001. What is the project's NPV?

A) -$2,724
B) $881
C) $1,393
D) $2,394
E) $2,942