A Project Will Not Produce Any Cash Flows for Two

Multiple Choice

A project will not produce any cash flows for two years.Starting in the third year,it will produce annual cash flows of $11,900 a year for two years.The project initially costs $43,600.In Year 6,the project will be closed and as a result should produce a final cash inflow of $50,500.What is the net present value of this project if the required rate of return is 8.7 percent?

A) $5,474.76
B) $4,802.57
C) $3,935.56
D) $7,465.95
E) $5,447.76