The Development of a Product Requires an Immediate Investment of $100,000

The development of a product requires an immediate investment of $100,000, and further investments of $40,000 at the end of each of the next four years. Net returns are expected to be $25,000 per year for 10 years, starting at the end of the fourth year. If the company requires a rate of return of 10% compounded annually, what is the net present value of the development project? Should the project be undertaken?

A) -$152,407.24; NO
B) $152,407.24; YES
C) -$36,994.64; NO
D) -$111,382.01; NO
E) $111,382.01; YES