Bevans Corporation Is Considering a Capital Budgeting Project That Would

Multiple Choice

Bevans Corporation is considering a capital budgeting project that would require an initial investment of $190,000. The investment would generate annual cash inflows of $58,000 for the life of the project, which is 4 years. The company's discount rate is 7%. The net present value of the project is closest to:

A) $190,000
B) $6,446
C) $196,446
D) $42,000