Polynesian Resorts Intl. $($PRI$)$ is considering purchasing beachfront bungalows on the island of Fiji. The project has a ten year life and has the after tax cash flows given below. PRI has a pretax cost of debt of $7\mathrm{.}00\%.$ CAPM data indicate the beta is $1\mathrm{.}10,$ the expected return on the market is $12\mathrm{.}00\%$ and the risk free rate is $3\mathrm{.}50\%.$ PRI uses a $52\%$ debt to capital ratio. What is the NPV of this project if PRI has a $24\%$ tax rate?

Year

$0$

$1-10$

After tax Cash Flow

$($$$1,175,000)$

$$255,000$

a$.$ $$389,042$

b$.$ $$404,872$

c$.$ $$616,013$

d$.$ $$217,027$

e$.$ $$466,239$