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Strausberg Inc. is considering investing in a project that would require an initial investment of $270,000. The life of the project would be 4 years.

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Strausberg Inc. is considering investing in a project that would require an initial investment of $270,000. The life of the project would be 4 years. The annual net cash inflows from the project would be $81,000. The salvage value of the assets at the end of the project would be $27,000. The company uses a discount rate of 10%. Present value of annuity of $1: Present value of $1: 1 2 3 10% 0.909 1.734 2.487 3.15 1 2 3 10% 0.909 0.826 0.751 0.683 4 What is the amount, if any, of the net present value of the salvage value that will be included in the project's NPV? A. Cash inflow of $18,441 B. Cash inflow of $27,000 C. Cash inflow of $24,523 OD. No cash flow effect

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