A company has a project with an initial after-tax cash savings of $40,000 at the end of the first year. These savings will increase by 2% annually, indfefinitely into the future. The firm has a debt-equity ratio of 1/3, a cost of equity of 16%, a cost of debt of 10%, and a 35% tax rate. The project is equal in risk to the current overall risk of the company. What is the present value of the project?

Select one:

A.$369,231

B.$357,021

C.$361,016

D.$321,906

E.$355,800