The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 8%. What is the projects NPV?

year annual cash flows project cost of capital

0 $ (125,000) 8%

1 $ 75,000

2 $ 55,000

3 $ 25,000

Choice: $6,876.20 Choice: $7,419.23 Choice: $11,443.89 Choice: $19,985.00