The current net income of Thompson Company is $240,000, and 10,000 shares of common stock have been issued. The company is considering a project that requires $360,000 and would issue bonds payable at 8%. Management believes that the funds raised can be used to increase income before interest and taxes by $360,000 per year. The current tax rate is 40%. What would be the amount of total projected net income if the new project is added to the current projects?

A.

$438,720

B.

$427,200

C.

$571,200

D. 456,000