Evaluate what is the net present value of the project

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Problem 1: A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the WACC is 13.78%?

Option 1: -$1,474.76
Option 2: -$-998.56
Option 3: -$1020.44
Option 4: -$1,011.40
Option 5: -$-1,084.76

Reference no: EM132915290

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