Drummond Corporation is considering making an investment in Project A, which will require an initial cash outlay of $20,000. Project A is expected to generate cash inflows of $6,000 for year 1, $8,000 for year 2, $10,000 for year 3, and $7,000 for year 4. The firm's hurdle rate is 12%.What is the payback period for Project A?

Select one:

A. 1.9 years

B. 2.6 years

C. 3.2 years

D. 4.0 years

Drummond Corporation is considering making an investment in Project A, which will require an initial cash outlay of $20,000. Project A is expected to generate cash inflows of $6,000 for year 1, $8,000 for year 2, $10,000 for year 3, and $7,000 for year 4. The firm's hurdle rate is 12%.What is the net present value for Project A?

Select one:

A. $3,301

B. $4,529

C. $5,786

D. None of the above