Sol's Sporting Goods Is Expanding,and as a Result Expects Additional

Multiple Choice

Sol's Sporting Goods is expanding,and as a result expects additional operating cash flows of $26,000 a year for 4 years.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 an additional $3,000 of net working capital throughout the life of the project; Sol expects to recover this amount at the end of the project.What is the net present value of this expansion project at a 16 percent required rate of return?

A) $18,477.29
B) $21,033.33
C) $28,288.70
D) $29,416.08
E) $32,409.57
F) None of the above.