A company plans to open a store in a certain location. The store will require an increase in working capital of $30,000 and purchase of equipment of $80,000 (assume the equipment have no residual value). The store will be rented for 7 years and is expected to produce an annual cash flow (after rent) of $25,000. The working capital will be released after 7 years. The required rate of return is 10%. The NPV of the project will be

A) $65,000

B) $43,625

C) $27,090

D) $21,700

discount rate for10% :

1: 0.909

2: 0.826

3: 0.751

4: 0.683

5: 0.621

6: 0.564

7: 0.513