Question: 3. Net present value method Consider the case of Sutherland Inc.: Sutherland Inc. is evaluating a proposed capital budgeting project that will require an initial

3. Net present value method Consider the case of Sutherland Inc.: Sutherland Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $176,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $46,000 Year 2 $51,900 Year 3 $49,200 Year 4 $48,900 Assume the desired rate of return on a project of this type is 10%. What is the net present value of this project? (Note: Do not round your intermediate calculations.) -$20,925.21 $15,732.70 $15,498.90 $7,505.40 Suppose Sutherland Inc. has enough capital to fund the project, and the project is not competing for funding with other projects. Should Sutherland Inc. accept or reject this project? Accept the project Reject the project

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