You will retire in twelve years. A developer who offers to buy your land for which you will receive $84,000 on an after-tax basis approaches you.

You will retire in twelve years. A developer who offers to buy your land for which you will receive $84,000 on an after-tax basis approaches you. However, if you sell your land you will have to give up (abandon) your business. On an after-tax basis, disposing of your building would bring $7,500. If you stay in business, the after-tax annual EAC from the needed building renovation would be $5,400. The before-tax cash flows from your business are $30,000 per year, and your tax rate is 25% on this amount. Your required return is 12%. If you sell your business, you have a job offer for $8,000 per year on an after-tax basis until you retire in 12 years. At that time you could sell your land but would only realize what you could receive today. You will not abandon your business unless you can become at least $20,000 wealthier. Should you abandon your business? a. No, the NPV is only $13,705. b. No, the NPV is only $13,571. c. Yes, the NPV is greater than $50,000. d. Yes, the NPV is greater than $20,000.