A new product line started by Rent-A-Swag, Inc. generated $25k in new profits this past year, and the profits are expected to grow at around 2.0% per year. The product line was financed with a loan from the bank which costs 7.0% per year in interest. How much value will this product line add to the company?

$535,000

$357,143

None. The cost of this project is larger than the value of its future cash flows.

$510,000

$500,000