Daniel's Market Is Considering a Project with an Initial Cost

Multiple Choice

Daniel's Market is considering a project with an initial cost of $176,500.The project will not produce any cash flows for the first three years.Starting in Year 4, the project will produce cash inflows of $127,500 a year for three years.This project is risky, so the firm has assigned it a discount rate of 17 percent.What is the project's net present value?

A) $105,222
B) -$6,500
C) $ 29,301.80
D) $ 621.30
E) -$601.03