Corp. is considering an investment in new manufacturing equipment. The equipment costs $220,000 and will provide annual after-tax inflows of $50,000 at the end of each of the next 7 years. The firm's market value debt/equity ratio is 1.5, its cost of equity is 14%, and its pretax cost of debt is 7%. The firm's combined marginal federal and state tax rate is 35%. Assume the project is of approximately the same risk as the firm's existing operations. What is the NPV of the proposed project?

Select one:

a. $37,406

b. $7,899

c. $13,436

d. $6,297

e. $9,277