Question: Our company is evaluating a project with the projected future annual cash flows shown as follows and an appropriate cost of capital of 8.0% :

Our company is evaluating a project with the projected future annual cash flows shown as follows and an appropriate cost of capital of 8.0% : Period 0: $-5,000,000.; Period 1: $0.; Period 2: $100,000.; Period 3: $3,500,000.; Period 4: $1,300,000.; Period 5: $420,000.; Compute the NPV statistic for the project and whether the company should accept or reject this project.

($894,470) / Accept

($894,470) / Reject

($1,943,862) / Accept

($1,943,862) / Reject

($1,364,557) / Reject

($1,364,557) / Accept

Insufficient data provided to calculate this statistic

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