A Project Has the Following Cash Flows: C₀ = −100,000;

Multiple Choice

A project has the following cash flows: C₀ = −100,000; C₁ = 50,000; C₂ = 150,000; C₃ = 100,000. If the discount rate changes from 12 percent to 15 percent, what is the CHANGE in the NPV of the project (approximately) ?

A) 12,750 increase
B) 12,750 decrease
C) 14,240 increase
D) 14,240 decrease