Empire Industries Is Considering Adding a New Product to Its

Multiple Choice

Empire Industries is considering adding a new product to its lineup.This product is expected to generate sales for four years after which time the product will be discontinued.What is the project's net present value at a required rate of return of 14.8 percent? $$\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & - \$ 62,000 \\\hline 1 & 16,500 \\\hline 2 & 23,800 \\\hline 3 & 27,100 \\\hline 4 & 23,300 \\\hline\end{array}$$

A) $1,505.52
B) $1,067.24
C) $1,758.71
D) $1,519.58
E) $902.71