Answer: Since Net Present Value is negative i.e. -4724.
Fox will not accept the project.
Step-by-step explanation:
Net Present Value = Initial after- tax outlay + Cash inflows
PVIFA(11.25%,5)
= -170000 + 45000
PVIFA(11.25%,5)
= -170000 +45000
3.6728
= - 4724
Since Net Present Value is negative i.e. -4724.
Fox will not accept the project.