Determine If This Project Is Profitable Under the Following Circumstances

Multiple Choice

Determine if this project is profitable under the following circumstances:
A company is undertaking a new project.The specialized equipment that needs to be bought has an expense of $28,000.In addition, permits and licenses are required which will cost $1500.Employee training will be an additional $46,000 expenditure.To produce the merchandise, raw materials are required that will cost $48,000 and this project will generate cash flows of $25,000 per year for 10 years.The cost of capital for this project is 12%.

A) Yes, the project is acceptable with a net present value equaling about $17,756.
B) Yes, the project is acceptable with a net present value equaling about $48,257.
C) No, the project is not acceptable with a net present value equaling about -$15,275.
D) No, the project is not acceptable with a net present value equaling about -$18,000.