Given the Following Expected Cash Flow Stream, Determine the NPV

Multiple Choice

Given the following expected cash flow stream, determine the NPV of the proposed investment in an income producing property and determine whether or not the investment should be pursued. Investment Horizon: 5 years; Expected Yearly Cash Flow in each of the next five years: $127,628. Expected Sale Price at end of 5 years: $1,595,350; Opportunity Cost of Investment 6%; Current Market Price of Property: $1,750,000

A) NPV is -$20,246; Decision is to invest
B) NPV is -$20,246; Decision is not to invest
C) NPV is $249,967; Decision is to invest
D) NPV is $249,967; Decision is to not invest