You are analyzing a project with a five-year life. The project requires an initial investment of $20 million, depreciable straight line over 5 years to a salvage value of zero. The expected after-tax operating income is expected to remain constant each year over time and the NPV is $12 million with a five-year life, based on a cost of capital of 10%. If you want to want to continue this project in perpetuity with the same yearly cash flows, what NPV would you assess for this project?

a.

23.36 million

b.

2.47 million

c.

-11.35 million

d.

64.41 million