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What net present value of the project using discount rate is

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A capital investment project requires an investment of $100,000 and has an expected life of four years. Annual cash flows before depreciation and taxes at the end of each year are expected to be as follows:

Year                              Amount

1                               $40,000

2                                $48,000

3                                $52,000

4                                 $46,000

Question 1: The asset will be depreciated under MACRS 3-year property. The company's tax rate is 30%. The net present value of the project using a 8 percent discount rate is

Option a. $28,519

Option b. $20,133

Option c. $53,280

Option d. $22,223

Option e. $14,880

Reference no: EM132523928

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