An Investment Project Requires a Net Investment of $100,000

Multiple Choice

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital is 12%. Determine the net present value for the project.

A) $940
B) $100,940
C) $77,884
D) $40,000