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Ms. Chanel Tobias, an ambitious young financial analyst working for McCain and Schumm Financial Solutions,Ltd., is attempting to reconstruct a project analysis of a co-worker who was fired for flunking FI 3300. She has found the following information:

The IRR is 14%.

The project life is 6 years.

The initial cost is $16,000.

In years 1,2,3,and 4 you will receive cash inflows of $3,000.

You know the cash flows in years 5 and 6 are equivalent, but the amount is not on file.

The appropriate discount rate is 10%.

What is the NPV of the project?

a. $ 2,335.25

b. $ 5,750.35

c. -$1,250.00

d. $ 2,000.00

e. None of the above

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