Opie, Inc Is Considering an Eight-Year Project That Has an Initial

Opie, Inc. is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000. The future after-tax cash inflows from its project for years 1 through 8 are the same at $38,000. Opie uses the net present value method and has a discount rate of 11.50%. Will Opie accept the project?

A) Opie accepts the project because the NPV is greater than$12,000.
B) Opie accepts the project because the NPV is about $11,114.
C) Opie rejects the project because the NPV is about -$11,114.
D) Opie rejects the project because the NPV is less than -$12,000.