A Company Needs to Spend $15 000 for Each of the Next

Multiple Choice

A company needs to spend $15 000 for each of the next three years. Net returns beginning in Year 4 are estimated at $2500 per year for ten years. The required rate of return is 9.75% compounded annually. The NPV is?

A) -$27 521.41
B) -$27 721.41
C) -$25 721.41
D) $25 217.41
E) $27 521.41