Corner Restaurant Is Considering a Project with an Initial Cost

Multiple Choice

Corner Restaurant is considering a project with an initial cost of $211,600.The project will not produce any cash flows for the first three years.Starting in Year 4,the project will produce cash inflows of $151,000 a year for three years.This project is risky,so the firm has assigned it a discount rate of 18.6 percent.What is the project's net present value?

A) $113,585.57
B) -$4,591.11
C) $51,786.86
D) $2,255.56
E) -$16,670.67