Mainland Farms has a tax rate of 32%, a pre-tax cost of debt of 5%, and a cost of equity of 8%. The firms debt to equity ratio is 0.70. What is the NPV of a project that has an initial investment of $40,000 and after-tax cash flows of $12,000 per year for 6 years? (Assume the risk of the project is the same as the firms existing operations.)

Select one:

a. $15,474

b. $20,908

c. $12,352

d. $18,812

e. $17,616