Incline Enterprises has a capital structure which is based on 50% debt, and 50% common stock. The after-tax cost of debt is 5%, and the cost of common stock is 12%. The company is considering a project that is equally as risky as the overall firm. This project has initial costs of $140,000 and cash inflows of $67,000 a year for three years. What is the projected net present value of this project?

Multiple Choice

($65,485)

(12,030)

$31,120

$47,360

$61,000