Demirjian Inc. is considering an investment project that would require an initial investment of $290,000 and that would last for 8 years. The annual cash receipts from the project would be $189,000 and the annual cash expenses would be $85,000. The equipment used in the project could be sold at the end of the project for a salvage value of $29,000. The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 13%.

1. When computing the net present value of the project, what are the annual after-tax cash receipts?

a. $56,700

b. $104,000

c. $132,300

d. $147,571

2. The net present value of the project is closest to:

a. $121,972

b. $114,339

c. $59,367

d. $67,000