A Project Will Produce Cash Inflows of $1,750 a Year

Multiple Choice

A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five,the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 13.75%?

A) -$5,474.76
B) -$1,011.40
C) -$935.56
D) $1,011.40
E) $5,474.76