The Greasy Spoon Restaurant is considering a project with an initial cost of $525,000.The project will not produce any cash flows for the first three years.Starting in year 4,the project will produce cash inflows of $721,000 a year for three years.This project is risky,so the firm has assigned it a discount rate of 16 percent.What is the project's net present value?
A)$417,294.85
B)$424,591.11
C)$451,786.86
D)$492,255.56
E)$512,408.23

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The Answer of The Greasy Spoon Restaurant is considering a project with an initial cost of $525,000.The project will not produce any cash flows for the first three years.Starting in year 4,the project will produce cash inflows of $721,000 a year for three years.This project is risky,so the firm has assigned it a discount rate of 16 percent.What is the project's net present value?
A)$417,294.85
B)$424,591.11
C)$451,786.86
D)$492,255.56
E)$512,408.23

The Greasy Spoon Restaurant Is Considering a Project with an Initial