Bruno's Lunch Counter Is Expanding and Expects Operating Cash Flows

Multiple Choice

Bruno's Lunch Counter is expanding and expects operating cash flows of $29,000 a year for 4 years as a result.This expansion requires $39,000 in new fixed assets.These assets will be worthless at the end of the project.In addition,the project requires $3,000 of net working capital throughout the life of the project.What is the net present value of this expansion project at a required rate of return of 15 percent?

A) $18,477.29
B) $21,033.33
C) $28,288.70
D) $29,416.08
E) $42,509.63