An IT department is evaluating a cloud migration project with an initial investment of USD 120,000. Expected net cash savings are USD 50,000 at the end of Year 1, USD 50,000 at the end of Year 2 and USD 40,000 at the end of Year 3. Using a 10% discount rate, what is the project's net present value (NPV)? (Present value factors at 10%: Year 1 = 0.9091, Year 2 = 0.8264, Year 3 = 0.7513.)
- AUSD 6,827
- BUSD 20,000
- C−USD 4,150
- DUSD 14,500