Aunt Bee is thinking about purchasing a new flam digger for $14,000. The expected net cash flows resulting from the digger are $10,000 in year 1, $8,000 in the 2nd year, $3,000 in the 3rd year, and $2,500 in the 4th year. Should Aunt Bee purchase this digger if its cost of capital is 12 percent?
Yes, NPV = $3,176
Yes, NPV = $7,166
Yes, NPV = $16,605
Yes, NPV= $5,030