Question: Target is considering a new inventory system that will cost $20 million. The system is expected to generate positive cash flows over the next four

Target is considering a new inventory system that will cost $20 million. The system is expected to generate positive cash flows over the next four years in the amounts of $5.5 million in year one, $3.5 million in year two, $2.4 million in year three, and $1.8 million in year four. Targets required rate of return is 8%. What is the net present value of this project?

	A.	$8.68 million
	B.	$ -5.3 million
	C.	$5.3 million
	D.	$-8.68 million

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