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Perez Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $ 190,000 . The respective future cash inflows from

Perez Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $ 190,000 . The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $40,000, $70,000 and $45,000.Perez uses the net present value method and has a discount rate of 12 %. WillPerez accept the project?

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Perez rejects the project because the NPV is about -$12,375.60

Perez accepts the project because the NPV is greater than $20,000.00

Perez rejects the project because the NPV is about -$2,375.60

Perez rejects the project because the NPV is about -$35,046.46

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