A hotel company is evaluating a capital project that management forecasts will generate $35,000 each year over its six year life. If the required rate of return given the project risks is 10 percent, and the project up front costs are estimated at $150,000, should management go forward with the project? (HINT: calculate the PV of the 6 year cash flows and compare to project's cost.) A or B?

A. Management should approve project as NPV is positive.

B. Management should reject project as NPV is negative.