To calculate the Net Present Value (NPV) of a project, we use the formula:

$NPV = \sum \left( \frac{C_t}{(1 + r)^t} \right) - C_0$

Where:

• $C_t$ is the cash flow in year $t$,
• $r$ is the discount rate,
• $t$ is the year (0, 1, 2, 3),
• $C_0$ is the initial investment (in this case, $750).

For this problem:

• Year 0 cash flow: $C_0 = -750$
• Year 1 cash flow: $C_1 = 100$
• Year 2 cash flow: $C_2 = 300$
• Year 3 cash flow: $C_3 = 400$
• Discount rate $r = 6\% = 0.06$

Now, let's calculate the NPV using the formula:

$NPV = \left( \frac{100}{(1+0.06)^1} \right) + \left( \frac{300}{(1+0.06)^2} \right) + \left( \frac{400}{(1+0.06)^3} \right) - 750$

Let me compute that for you.The Net Present Value (NPV) of the project is approximately -52.81, which corresponds to the option -$52.81.

Would you like further details or have any questions?

Here are 5 related questions for further exploration:

1. What does a negative NPV imply about a project's financial viability?
2. How does changing the discount rate affect the NPV of a project?
3. What is the formula for Internal Rate of Return (IRR) and how does it relate to NPV?
4. How do cash flows beyond year 3 affect NPV?
5. What is the difference between NPV and Profitability Index (PI)?

Tip: A negative NPV means the project is expected to lose value, and the investment might not be worthwhile under the given conditions.