Answer:
B. $(3,100).
Step-by-step explanation:
As we know Net Present value is calculated by discounting each years cash flows using using the required rate of return.
Cash Flow = Net Income + Depreciation = $1,200 + $10,000 = $11,200
Present value of the 3 years cash flow
Present value = $11,200 x ( 1 - ( 1 + 12% )^-3 ) / 12% = $26,900
Net present value is the sum of all cash inflows and outflows.
Net Present Value = ($30,000) + $26,900 = ($3,100)