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You are considering a project that will cost you $60,000 today and is projected to earn $5,000 next year, with the inflows growing at a

You are considering a project that will cost you $60,000 today and is projected to earn $5,000 next year, with the inflows growing at a 2% annual rate in perpetuity thereafter. If your cost of capital is 7%, what is the NPV of this project?

a) -$10,000

b) $2,500

c) $40,000

d) $65,000

e) $190,000

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