Question: An office building is expected to create operating cash flows of $ 2 7 , 5 0 0 a year for three years, based on

An office building is expected to create operating cash flows of $27,500 a year for three years, based on tenants' rental income. The purchase of the fixed assets for this building will cost $57,000. These assets will have no value at the end of the project. An additional $2,500 of net working capital will be required throughout the life of the project. Calculate the net present value of this project if the required rate of return is 8 percent?
A. $15,854.75
B. $11,370.17
C. $3,375.00
D. $13,354.75
E. $10,854.75
(*Answer is not option B, $11,370.17)
 An office building is expected to create operating cash flows of

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