An Outlay of $180,000 Is Expected to Yield the Following

Multiple Choice

An outlay of $180,000 is expected to yield the following cash flows: Year Net Cash Flow
1 75,000
2 55,000
3 60,000
4 25,000
5 15,000
6 10,000
The cost of capital is 12 percent. What is the NPV?

A) $8,505
B) $5,070
C) $3,525
D) $2,982