Burns and nuble is considering an investment in a project whichrequire an initial outlay of $320,000 and produce expected cashflows in years 1-5 of $87,385 per year. You have determined thatthe current after tax cost of the firms capital required rate foreach source of financing is as follows:

Cost of long term debt 8%

cost of preferred stock12%

cost of common stock 16%

Long term debt currently makes up 20% of the capital structurepreferred stock 10%. And common stock 70% what is the net presentvalue of this project?

A. -$13,876

B. -$20,000

c. $ 0

D. $287,692

E. $1,568