Murray is planning a project that will cost $22,000. The annual cash inflow, net of income taxes, will be $5,000 a year for 7 years. The present value of $1 at 12% is as follows:

Period Present Value of $1 at 12%

1 .893

2 .797

3 .712

4 .636

5 .567

6 .507

7 .452

Using a rate of return of 12%, what is the present value of the cash flow generated by this project?

A. $34,180

B. $22,820

C. $35,000

D. $22,600