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 percent?

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