Declan MacManus is considering a capital budgeting project. This project willinitially require a $25,000 investment in equipment and a $3,000 working capitalinvestment. The useful life of this project is 5 years with an expected salvage value ofzero on the equipment. The working capital will be released at the end of the 5 years.The new system is expected to generate net cash inflows of $9,000 per year in each of the5 years. Also a repair of the equipment will be required at the END of year 3, costing$5,000. MacManus’ discount rate is 14%. The net present value of this project is closestto (ignoring taxes):A)$(3,088)B)$1,079C)$2,522D)$4,454E)$3,375