Lester's Has a New Project with Projected Real Cash Flows

Multiple Choice

Lester's has a new project with projected real cash flows of $12,200,$14,600,and $16,300 for Years 1 to 3,respectively.The nominal discount rate is 15.96 percent and the inflation rate is 4 percent.What is the net present value of the project if the initial cost is $25,000?

A) $9,711.64
B) $8,946.48
C) $9,508.70
D) $9,444.15
E) $9,248.74