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The net present value (NPV) for a project is the present value of the cash...

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Accounting

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The net present value (NPV) for a project is the present value of the cash flows generated by the project minus the initial investment in the project. Assume that a firm takes on a project that requires an initial investment in Year 0 of $20,000. Also assume that the project produces an annual cash flows of $1,800 in all future years (a perpetuity). If the cost of capital for this project is 6 percent, then what is the net present value for this project? A) $9,750 B) $10,250 C) $10,500 D) $10,000 E) $10,750

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