A Project Costing $6,200 Initially Should Produce Cash Inflows of $2,860

Multiple Choice

A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years.After the three years,the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300.What is the net present value of this project if the required rate of return is 11.3 percent?

A) $2,474.76
B) $2,903.19
C) $935.56
D) $3,011.40
E) $1,980.02