Martin Enterprises Sells Motor Homes and Campers and Currently Has

Martin Enterprises sells motor homes and campers and currently has an after-tax cost of capital of 7 percent. Nagle's sells off-road dirt bikes and has an after-tax cost of capital of 13 percent. Martin
Enterprises is considering adding dirt bikes as part of its sales line up. It estimates that sales from
These bikes could become 10 percent of its overall sales. The initial cash outlay for this project is
$50,000. The expected net cash inflows are $8,000 a year for nine years. What is the net present
Value of this project to Martin Enterprises?

A) -12,003.66
B) -$8,946.76
C) -$1,007.07
D) $2,121.86
E) $2,886.02