You Are Offered an Investment Opportunity That Costs You $28,000

Multiple Choice

You are offered an investment opportunity that costs you $28,000, has an NPV of $2278, lasts for three years, has interest rate of 10%, and produces the following cash flows: The missing cash flow from year 2 is closest to:

A) $12,500
B) $12,000
C) $13,000
D) $10,000