The common stock of Ron Construction has a beta of 0.90. The T-bill rate is 4% and the market risk premium is estimated at 8%. Rons capital structure is 30% debt, paying a 5% interest rate and 70% equity. Ron pays tax at 40%.

What is the NPV of a project that costs $200,000 and will generate a cash flow of $100,000 for 8 years?