Question: A project requires a $28,500 initial investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a

A project requires a $28,500 initial investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:

i = 10%	i = 10%	i = 10%
n = 1	n = 2	n = 3
0.9091	0.8264	0.7513

Multiple Choice

$2,668

$1,342

$29,842

$(7,461)

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