A project has cash flows of -$119,000, $52,800, $60,200, and $33,100 for years 0 to 3, respectively. The required rate of return is 12 percent. Based on the net present value of , you should the project.

-$306.15 and rejected

Explanation:

Year     Cash flows Discount factor  Present value

                                at 12%

0          $-119,0001                              $-119,000  (A)

1          $52,8000.8928571429$47142.86

2          $60,2000.7971938776$47,991.07

3          $33,100      0.7117802478         $23559.93

Sum                                                         $118,693.85 (B)

Net present value                                -$306.15 (A - B)

answer; organizational;