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Company Z is considering creating a new product line. The new line would cost them $780,500 upfront. The first 3 years they expect an annual

Company Z is considering creating a new product line. The new line would cost them $780,500 upfront. The first 3 years they expect an annual cash flow of $190,000. In year, 4 they expect a cash flow of $275,000, and in year 5, they expect a cash flow of $380,500. If Company Z's discount rate is 12.55%, then we can say that

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The net present value of the project is $439,817.43.

The net present value of the project is $842,158.33

The net present value of the project is -$127,713.89.

the net present value of the project is $53,627.41.

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