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Northrop Grumman is looking to invest in cost - cutting projects. One project requires an initial investment of $ 8 5 8 . Assume a

Northrop Grumman is looking to invest in cost-cutting projects. One project requires an initial investment of $858
. Assume a cost of capital equal to 1%
. The projects return over the subsequent three years are summarized in the following table:
Year
Cash Flow
(in dollars, $)
16,834.18
2566.33
310.99
What is the net present value of the project?
$4,855.7625
$3,237.175
$6,474.35
$1,618.5875

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