Moates Corporation has provided the following data concerning an investment project that it is considering:

Initial investment	$	260,000
Annual cash flow	$	122,000	per year
Expected life of the project		4	years
Discount rate		11	%

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

The net present value of the project is closest to:

Multiple Choice

• $118,566

• $260,000

• $(138,000)

• $(118,566