Sandstone, Inc. is considering a fourminusyear project that has an initial afterminustax outlay or afterminustax cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000 and $30,000 for years 1, 2, 3 and 4, respectively. Sandstone uses the net present value method and has a discount rate of 12%. Will Sandstone accept the project?a. Sandstone rejects the project because the NPV is less than-$4,000. b. Sandstone accepts the project because the NPV is greater than $30,000. c. Sandstone rejects the project because the NPV is-$3,021. d. Sandstone accepts the project because it has a positive NPV of over $28,000
