A Project Will Produce Cash Inflows of $5,400 a Year

Multiple Choice

A project will produce cash inflows of $5,400 a year for 3 years with a final cash inflow of $2,400 in Year 4. The project's initial cost is $13,400. What is the net present value if the required rate of return is 14.2 percent?

A) −$311.02
B) $505.92
C) −$165.11
D) $218.98
E) $668.02