A five year project has a net present value of 160,000 when it is discounted at 12%. The

project includes an annual cash outflow of 50,000 for each of the five years. No tax is

payable on projects of this type.

The percentage increase in the value of this annual cash outflow that would make the project

no longer financially viable is closest to:

a)

64%

b)

89%

c)

113%

d)

156%