Beach view rejects the projects because the npv is between

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Beach View Industries is considering a project that has an initial after- tax outlay or after- tax cost of $900,000. The respective future cash inflows from this four- year project for years 1 through 4 are: $200,000, $175,000, $250,000, AND $ 320.000, respectively. Beach View has a cost of capital of 11%. Will Beach View accept the project?

A) Beach View rejects the projects because the NPV is between -$20,000 and -$50,000.

B) Beach View accepts the projects because the NPV is between $10,000 and $40,000.

C) Beach View rejects the projects because the NPV is below -$100,000

D) Beach View accepts the projects because the NPV is greater than the IRR.

Reference no: EM132034399

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