A Company has a Cost of Capital of 10.25%, and has decided to invest into a new project costing $100,000. It expects the total cash flow to be in year 1 = $50,000, year 2 = $35,000, year 3 = -$10,000, year 4 = $75,000 and the final year to be: $40,000. Find the NPV of the project and decide if you should: Accept or Reject it.

Question 27 options:

$42,003.3888, Accept

$89,396.7649, Accept

-$89,396.7649, Reject

-$42,003.3888, Reject