A small company is evaluating the NPV of a potential investment project. The project requires an initial investment

of $$120,000.$ The estimated annual cash flows for the first five years are as follows:

Base Case Cash Flows:

Year $1$: $$30,000$

Year $2$: $$25,000$

Year $3$: $$50,000$

Additional Cash Flows for Extended Time Horizons:

Year $4$: $$55,000$

Year $5$: $$60,000$

Base Case Assumptions:

Discount Rate $(r)$: $12\%$

Calculate NPV for Extended Time Horizon $(4$ years$)$

$($select the answer closest to your calculation$)$

Multiple Choice

$NPV=-2,742\mathrm{.}93$

$NPV=31,299\mathrm{.}72$

$NPY=5,300$

$NPV=-37,700\mathrm{.}81$