9.

MC Qu. 59 A project costing...

A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300. What is the net present value of this project if the required rate of return is 11.3 percent?

a) $2,474.76

b) $2,903.19

c) $935.56

d) $3,011.40

e) $1,980.02