You have created a project that saves your company $35,000 per year. The Investment required is $145,000. You have been asked to answer the following questions by the accounting department before they can approve the investment. Use the information provided below to answer the questions.

Project Life: 4 years.

Depreciation: Straight-line, using 4 years.

Discount Rate for your company: 15%

Savings Growth over project life: No savings growth is assumed.

What is the Net Present Value (NPV) of this project?

a

$ 69,647

b

$ 314,053

c

$1,014,000

$23,444