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 %%. Nagle's sells off-road dirt bikes and has an after-tax cost of capital of 13 %%. Martin Enterprises is considering adding dirt bikes as part of its sales line up. It estimates that sales from these bikes could become 10 %% 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