A Proposed Project Requires an Initial Cash Outlay of $749,000

Multiple Choice

A proposed project requires an initial cash outlay of $749,000 for equipment and an additional cash outlay of $48,500 in year one to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 16 percent?

A) -$105,427
B) -$41,209
C) $67,333
D) $128,612
E) $239,602