Millie is risk manager of JKL Company. She is considering an investmen

Millie is risk manager of JKL Company. She is considering an investment in a loss control project.

The project will cost $40,000. Assuming a 10 percent discount rate, the present value of the future net cash flows that this project will generate is $60,000. What is the net present value (NPV) of this project?
A) $20,000
B) $26,000
C) $60,000
D) $100,000

ANSWER

Answer: A