A Project Costs $91,000 Today and Is Expected to Generate

Multiple Choice

A project costs $91,000 today and is expected to generate cash flows of $11,000 per year for the next 20 years. The firm has a cost of capital of 8%. Should this project be accepted, and why?

A) Yes, the project should be accepted since it has a NPV = $15,391.23.
B) Yes, the project should be accepted since it has a NPV = $13,610.89.
C) Yes, the project should be accepted since it has a NPV = $16,999.62.
D) None of these answers is correct.