Project 3

The opportunity cost of capital is 7%. The initial cost of the project is $570,000 and generates the following cash flows: $150,000 in year 1, $180,000 in year 2, $120,000 in year 3, and $200,000 in year 4.

What is the NPV of Project 3?

Select one:

a. Less than $0

b. Between $0 and $25,000

c. Between $25,000 and $50,000

d. Between $50,000 and $75,000

e. Greater than $75,000