Mujalli Corporation Is Considering a Capital Budgeting Project That Would

Multiple Choice

Mujalli Corporation is considering a capital budgeting project that would require an initial investment of $200,000. The investment would generate annual cash inflows of $64,000 for the life of the project, which is 4 years. At the end of the project, equipment that had been used in the project could be sold for $10,000. The company's discount rate is 9%. The net present value of the project is closest to:

A) $14,376
B) $66,000
C) $214,376
D) $7,296