(Appendix 8C)Alopecia Hair Tonic Corporation Is Considering an Investment Project

Multiple Choice

(Appendix 8C) Alopecia Hair Tonic Corporation is considering an investment project that is expected to generate net cash inflows of $65, 000 per year for 4 years.The only initial investment funds required will be a $150, 000 increase in working capital.This will be released at the end of the 4 years.Alopecia's after-tax cost of capital is 12% and its tax rate is 30%.The net present value of this investment project is closest to:

A) $4, 622
B) $59, 222
C) $83, 584
D) $99, 964