Project XYZ has a cost of $200,000 and provides the following annual cash inflows: year 1 $35,000; year 2 $25,000; year 3 $175,000; and year 4 $10,000. What is the net present value of this investment, assuming the discount rate is 8%?
A) $135
B) $4,687
C) $101,050
D) $200,135
A) $135
?200,000 Factor 200,135 NPV = 135
35,000 0.926 32,410
25,000 0.857 21,425
175,000 0.794 138,950
10,000 0.735 7,350
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