Weghorst Co. is considering a three-year project that will require an initial investment of $45,000. It has estimated that the annual cash flows for the project under good conditions will be $60,000 and $10,000 under bad conditions. The firm believes that there is a 60% chance of good conditions and a 40% chance of bad conditions. If the firm is using a weighted average cost of capital of 8.0000%, what will be the expected net present value (NPV) of the project?
a) $58,084
b) $37,755
c) $31,946
d) $40,659