A 10-yr project has an initial cost of $400,000 for fixed assets. The fixed assets will be depreciated to a $0 book value using a 20-yr straight line depreciation method.

Each year, annual revenue is $50,000 and cost is $15,000.

After 10 years, you will terminate the project. You expect to sell the the fixed assets for $250,000.

The project is financed by 40% equity and 60% debt. The required rate of return on equity is 12% and the borrowing cost is 4%.

Assume the tax rate is 25%.

What is the project's NPV?

Group of answer choices

-51,056

-21,937

29,441

43,662