BC Sports is considering expanding its T-Shirt line. The project would last 3 years and have an initial investment of $200,000. The after-tax cash flows are estimated at $60,000 for year one and $120,000 for each of years 2 and 3. The firm has a target debt-to-equity ratio of 0.4. BC Sports' last quarterly dividend was $1.5 and dividends are expected to grow 1% per quarter. The company's stock is currently selling at $66. The company's cost of debt is 7%. The tax rate is 34%. What is the Net Present Value of the project? (Hint: Compute an EAR for the cost of equity) $39,309.28 $38,226.58 $36,400.22 $40,499.98