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You are considering the following project. Your cost of capital is 8%. The cash flows are as follow: Year 0 1 2 3 4 -1000

  1. You are considering the following project. Your cost of capital is 8%. The cash flows are as follow:

    Year

    0

    1

    2

    3

    4

    -1000

    400

    100

    500

    500

    What is the NPV of this project?

    A.

    389

    B.

    221

    C.

    500

    D.

    1500

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