A small company is evaluating the NPV of a potential investment project. The project requires an initial investment of $$150,000.$ The estimated annual cash flows tor the first five years are as

follows:

Base Case Cash Flows:

Year $1$: $$25,000$

Year $2$: $$20,000$

Year $3$: $$45,000$

Additional Cash Flows for Extended Time Horizons:

Year $4$: $$50,000$

Year $5$: $$55,000$

Base Case Assumptions:

Discount Rate $($r$)$: $8\%$

Calculate NPV for Extended Time Horizon $(5$ years$)$

Multiple Choice

$NPV=$$$37,245\mathrm{.}24$

$NPV=193\mathrm{.}43$

$NPV=193\mathrm{.}43$

$NPV=-37,245\mathrm{.}24$