What is the Net Present Value (NPV) for the cash flows provided in the

What is the Net Present Value (NPV) for the cash flows provided in the table below?

Note: The negative cash flow for year 0 is the initial investment for the project. The required rate of return is 8% and the internal rate of return is 9.70%.
Year Cash Flow
0 -$100,000
1 $40,000
2 $40,000
3 $40,000

A) $0.00
B) $100,000.00
C) $3,083.88
D) -$103,083.88

ANSWER

C
Explanation: C) Via Calculator: N = 3, I = 8, PMT = 40,000, FV = 0, PV = $103,083.88, NPV = PV – Initial investment = $103,083.88 – $100,000 = $3,083.88.