Sorenson Stores Is Considering a Project That Has the Following $\begin{array}{ll}\text { Year } & \text { Cash Flow } \\0 & \mathrm{CF} 0=? \\1 & \$ 2,000 \\2 & 3,000 \\3 & 3,000 \\4 & 1,500\end{array}$

question 40

Multiple Choice

Sorenson Stores is considering a project that has the following cash flows:​​​ $\begin{array}{ll}\text { Year } & \text { Cash Flow } \\0 & \mathrm{CF} 0=? \\1 & \$ 2,000 \\2 & 3,000 \\3 & 3,000 \\4 & 1,500\end{array}$ ​The project has a payback of 2.5 years,and the firm's cost of capital is 12%.What is the project's NPV?

• A)$577.68
• B)$765.91
• C)$1,049.80
• D)$2,761.32

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