DYI Construction Co

Multiple Choice

DYI Construction Co.is considering a new inventory system that will cost $750,000.The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one,$325,000 in year two,$150,000 in year three,and $180,000 in year four.DYI's required rate of return is 8%.What is the net present value of this project?

A) $104,089
B) $100,328
C) $96,320
D) $87,417