A Firm Invests $200 000 in Machinery That Yields Net

Multiple Choice

A firm invests $200 000 in machinery that yields net after-tax cash flows of $90 000 at the end of each of the next three years. The opportunity cost of capital is 12%. What is the net present value of the project (to the nearest thousand dollars) ?

A) -$16 000
B) -$8000
C) $0
D) $8000
E) $16 000