If pre-tax cash flow is $100,000 and the tax rate is 20%, after-tax cash flow is:

A) $100,000.
B) $60,000.
C) $120,000.
D) $80,000.

First, we need to calculate the after-tax cash flow for each year of the project:
Year 0: -$120,000 - $30,000 = -$150,000 (initial investment and working capital)
Year 1-10: $100,000 - ($100,000 x 0.20) = $80,000 (pre-tax cash flow minus taxes)
Year 10: $80,000 + $10,000 = $90,000 (last year's after-tax cash flow plus salvage value)

Next, we calculate the present value of each after-tax cash flow using the discount rate:
PV(Y0) = -$150,000 / (1 + 0.16)^0 = -$150,000
PV(Y1-10) = $80,000 / (1 + 0.16)^1 + $80,000 / (1 + 0.16)^2 + ... + $80,000 / (1 + 0.16)^10 = $425,541
PV(Y10) = $90,000 / (1 + 0.16)^10 = $20,772

Finally, we add up all the present values to get the net present value (NPV):
NPV = -$150,000 + $425,541 + $20,772 = $296,313

Since the NPV is positive, this project is acceptable and financially feasible. Therefore, the best choice is option D.