You are considering producing a new product, which if it is successful will produce cash flows of

$$40,000$ per year in perpetuity. If it is unsuccessful, the cash flow will be $-$$$25,000$ in the first

year and then you will shut down. If the probability of success is $0\mathrm{.}60$ and the opportunity cost

of capital is $8$ percent, what is the maximum that you would be willing to pay to undertake the

investment?

A$.$ $$12,963$

B$.$ $$175,000$

C$.$ $$290,741$

D$.$ $$300,000$

E$.$ $$475,000$ please use finance formulas. thank you