Murphy's Authentic is considering a project with an initial cost of $124,000.The project will not produce any cash flows for the first three years.Starting in Year 4, the project will produce cash inflows of $85,000 a year for three years.This project is risky, so the firm has assigned it a discount rate of 15 percent.What is the project's net present value?
A)$105,222
B)$3,136.43
C)-$3,140.95
D)$131,000
E)$3,606.89

Question

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The Answer of Murphy's Authentic is considering a project with an initial cost of $124,000.The project will not produce any cash flows for the first three years.Starting in Year 4, the project will produce cash inflows of $85,000 a year for three years.This project is risky, so the firm has assigned it a discount rate of 15 percent.What is the project's net present value?
A)$105,222
B)$3,136.43
C)-$3,140.95
D)$131,000
E)$3,606.89

Murphy's Authentic Is Considering a Project with an Initial Cost