Heggledy Peggledy Inc. is considering a project with a 9-year life. The initial investment is $95 million, which will be depreciated straightline to a salvage value of $15 million. The after-tax operating income each year is $13 million. There are no capital maintenance or working capital requirements. The cost of capital for the company taking the project is 7% but this project has a different risk profile because it is in a different business, with a cost of capital of 10%. The marginal tax rate is 40%. What is the NPV of this project?

Question options:

a)	$-24.70 million
b)	$55.77 million
c)	$31.06 million
d)	$37.42 million
e)	$47.61 million

dug