Considering a project that has an up-front cost

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The executives of Garner-Wagner Inc. are considering a project that has an up-front cost of $3 million and is expected to produce a cash flow of $500,000 at the end of each of the next 5 years. The project's cost of capital is 10%.

Refer to Exhibit 14.3. Based on the above data, what is the project's net present value?

A) -$1,312,456

B) -$1,104,607

C) -$875,203

D) $105,999

E) $321,788

Reference no: EM13970765

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