Lesters has a new project with projected real cash flows of $12,200, $14,600, and $16,300 for Years 1 to 3, respectively. The nominal discount rate is 15.752 percent and the inflation rate is 4 percent. What is the net present value of the project if the initial cost is $25,000?

$7,711.64

$6,946.48

$10,508.70

$9,569.56

$9,248.74