Green Acres Winery Is Considering a Project with Annual After-Tax

Multiple Choice

Green Acres Winery is considering a project with annual after-tax cash flows of $10 000 per year for 7 years. The company's cost of capital is 8%. Using the net present value method, what is the maximum amount that the Green Acres should invest?

A) $70 000
B) $40 845
C) $64 813
D) $52 064