28.

You have been asked to evaluate an infinitely-lived project. Sales in the first year are projected to

be $100. Costs are projected at $50. There is no depreciation, and the tax rate is 30%. The real

required return is 10%. The inflation rate is projected to be 8%. Sales and costs will increase at

the rate of inflation. The project costs $300. What is the NPV?

A. $142.03

B. $36.36

C. $71.72

D. $50.00