Question $5(4$ points$)$

Estimated time allowance: $7-10$ minutes. Meyer, Inc. is considering a five$-$year project that

has an initial after$-$tax outlay or after$-$tax cost of $$70,000.$ The future after$-$tax cash

inflows from its project for years $1,2,3,4$ and $5$ are all the same at $$35,000.$ Meyer

uses the net present value method and has a discount rate of $10\%.$ Will Meyer

accept the project?

Meyer rejects the project because the NPV is about $-$$$13,382.$

Meyer accepts the project because the NPV is about $$69,455.$

Meyer rejects the project because the NPV is less than $-$$$33,021.$

Meyer accepts the project because the NPV is about $$62,678.$