Question: DYI Construction Co. is considering a new inventory system that will cost $1.25 million. The system is expected to generate positive cash flows over the
DYI Construction Co. is considering a new inventory system that will cost $1.25 million. The system is expected to generate positive cash flows over the next six years in the following amounts: $400,000 in year one, $325,000 per year during years two through four, $150,000 in year five, and $180,000 in year six. DYIs required return is 8%. What is the net present value (NPV) of this project?
A. $87,888.47
B.$103,151.56
C. $43,131.59
D.$111,403.68
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