Millie Is Risk Manager of JKL Company

Multiple Choice

Millie is risk manager of JKL Company.She is considering an investment in a loss control project.The project will cost $40,000.Assuming a 10 percent discount rate,the present value of the future net cash flows that this project will generate is $60,000.What is the net present value (NPV) of this project?

A) $20,000
B) $26,000
C) $60,000
D) $100,000