Question 11

"Our company is evaluating a project with the projected future annual cash flows shown as follows and an appropriate cost of capital of 10.75%: Period 0: $-1,035,000.; Period 1: $-39,000.; Period 2: $84,000.; Period 3: $360,000.; Period 4: $731,000.; Period 5: $290,000.; Compute the NPV statistic for the project and whether the company should accept or reject this project."

		"-$76,767 / Accept"
		"-$101,478 / Accept"
		"-$125,377 / Accept"
		"$391,000 / Accept"
		"-$76,767 / Reject"
		"-$101,478 / Reject"
		"-$125,377 / Reject"