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. Geronimo, Inc. is considering a project that has an initial outlay of $ 2 2 0 , 0 0 0 . The respective future

. Geronimo, Inc. is considering a project that has an initial outlay of $220,000. The respective future cash inflows from its fouryear project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?
a. Geronimo accepts the project because the NPV is greater than $10,000.00.
b. Geronimo rejects the project because the NPV is about $22,375.73.
c. Geronimo rejects the project because the NPV is about $12,375.60.
d. Geronimo rejects the project because the NPV is about $2,375.60.

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