Simplicity Printers Is Considering a Project with the Following Cash

question 15

Multiple Choice

Simplicity Printers is considering a project with the following cash flows:
Initial Outlay = $126,000
Cash Flows: Year 1 = $44,000
Year 2 = $59,000
Year 3 = $64,000
If the appropriate discount rate is 11.5%,compute the NPV of this project.

• A) -$14,947
• B) $2,892
• C) $7,089
• D) $41,000