Consider Indive Corp. which reported earnings of $750,000. Without new projects, the company will continue to generate earnings of $750,000 in perpetuity. Indive has a new project that will generate additional earnings of $100,000 each year in perpetuity. Assume that all earnings are paid as dividends and that the company requires a 14% rate of return. What is the price-earnings (P/E) ratio of the company if it undertakes this project? 7.00 6.88 7.20 7.14