ELK,IncHas Compiled This Information for a Proposed Project: Sales Price

ELK,Inc.has compiled this information for a proposed project: Sales price = $89 ± 3 percent;Fixed costs = $21,800 ± 1 percent;Variable cost per unit = $42.90 ± 3 percent;Sales quantity = 1,500 units ± 5 percent;Tax rate = 34 percent;Initial investment in fixed assets = $36,500;Depreciation method = Straight-line to a zero book value over the project's life;Project life = 4 years;Salvage value of fixed assets = $0;Net working capital requirement = $4,800,which will be recouped at the end of the project;Discount rate = 12 percent.What is the project's net present value for the pessimistic scenario?

A) $40,661.77
B) $47,422.30
C) $45,899.20
D) $44,371.81
E) $52,222.30