A company is planning on a new initiative that will cost $30,000 today, and expects the following future cash flows from the initiative.

YEAR 1: $5,000

YEAR 2: $10,000

YEAR 3 : $14,000

Year 4: $8,000

The company will borrow at a rate of 5% to fund this initiative: What is the NPV for this initiative? Note: Depending on the tool you used to solve (formula, tables, Excel, calculator, etc..) your answer may vary slightly.

a. $1,676

b. $2,507

c. $3,888

d. $32,507