After paying a Consultant $3,000 for a market analysis, a computer supply company has decided to expand operations and add a new store near the DU campus. They are interested in remodeling an existing vacant store at a cost of $95,000 and then paying $8,000 per year in rent and $38,000 in other annual expenses. Cash inflows are expected at $78,000 per year over the next five years. Given a required return of 8.6% per year, is this a good deal? Compute Net Present Value (NPV). Hint: Draw a Timeline for yourself but do not submit the Timeline to help you get the correct answer.

Group of answer choices

NPV: $40,771, a Good Deal.

NPV: $30,771, a Good Deal.

NPV: $27,771, a Good Deal.

NPV: ($10,771), a Bad Deal.