Murphy's Authentic Is Considering a Project with an Initial Cost

Multiple Choice

Murphy's Authentic is considering a project with an initial cost of $124,000.The project will not produce any cash flows for the first three years.Starting in Year 4, the project will produce cash inflows of $85,000 a year for three years.This project is risky, so the firm has assigned it a discount rate of 15 percent.What is the project's net present value?

A) $105,222
B) $3,136.43
C) -$3,140.95
D) $131,000
E) $3,606.89