Yandell Inc. is considering an investment project that would require an initial investment of $310,000 and that would last for 8 years. The annual cash receipts from the project would be $233,000 and the annual cash expenses would be $117,000. The equipment used in the project could be sold at the end of the project for a salvage value of $16,000. 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 19%.

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

A) $116,000

B) $163,100

C) $188,714

D) $69,900

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

A) $11,065

B) $60,302

C) $63,090

D) $13,854