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 6.00%. CAPM data indicate the beta is 1.10, the expected return on the market is 12.00% and the risk free rate is 2.50%. PRI uses a 48% debt to capital ratio. What is the NPV of this project if PRI has a 30% tax rate? Year 0 1 10 After tax Cash Flow ($1,150,000) $235,000

a. $579,620

b. $374,888

c. $336,099

d. $318,231

e. $127,719